Sep 06, 2007. /Lesprom Network/. The European Commission has approved on September 5, 2007, SCA’s acquisition of Procter & Gamble’s European tissue operations with a number of strong and well-known brands. The acquisition should be seen against the background of SCA’s aim to be the undisputed leader within the tissue category in Europe and the preferred choice for European consumers and customers. The purchase price is Euro 512 million and will be paid in cash in two stages. A first payment of Euro 347 million will be made when the deal is completed, planned for 1 October. The second part of the purchase price, Euro 165 million, will be paid following agreed technical adjustments at certain plants, which are expected to be completed in March 2008. Lennart Persson, acting president and CEO of SCA, comments: “The acquisition gives SCA key prerequisites for the creation of an even better platform for consumer-driven awareness and will strengthen our market positions in several important markets.” He adds: “Today’s decision by the European Commission means that we can start the integration work. At a later date, we plan to provide additional financial information, decisions on possible restructuring, and the synergy effects of the acquisition, which will primarily affect brands and markets.” The approval is conditional on SCA divesting its present operations within handkerchiefs under the Softis brand in Germany and Austria and, if the purchaser so requires, related production capacity and equipment. The sale of Softis handkerchiefs in Germany and Austria amounted to over Euro 20 million in 2006. In conjunction with a sale of Softis, a license will be granted to the purchaser to use SCA’s Zewa brand (for handkerchiefs) for a limited period. Svenska Cellulosa Aktiebolaget SCA is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products. Sales are conducted in some 90 countries. SCA has annual sales in excess of SEK 101 billion (Euro 11 billion) and production facilities in more than 40 countries. SCA had approximately 51 000 employees at the beginning of 2007. SCA shares are traded on the Stockholm, London and New York stock exchanges.