HELSINKI, Aug 14 (Reuters) - There are no plans to merge the world's top paper and board maker Stora Enso <STERV.HE> and largest magazine paper maker UPM-Kymmene <UPM1V.HE>, UPM Chairman Bjorn Wahlroos told Finnish papers.
'Scale benefits would be significant, but this merger will not happen. The main reason is the Brussels competition authority,' Wahlroos was quoted as saying in daily Helsingin Sanomat.
The European paper industry has for years suffered from overcapacity which has kept a lid on prices, while increasing costs of wood and energy have eaten into already low margins.
Industry executives have spoken of a need for European consolidation for years, and in recent speculation, the two large Finnish firms have been named as likely to merge.
'There are no such plans. When combining cultural issues and Brussels, I doubt whether it will ever be talked about,' Wahlroos told business daily Kauppalehti.
(Reporting by Tarmo Virki; Editing by Ben Tan) Keywords: UPM STORA/ tf.TFN-Europe_newsdesk@thomson.com ejp COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'Scale benefits would be significant, but this merger will not happen. The main reason is the Brussels competition authority,' Wahlroos was quoted as saying in daily Helsingin Sanomat.
The European paper industry has for years suffered from overcapacity which has kept a lid on prices, while increasing costs of wood and energy have eaten into already low margins.
Industry executives have spoken of a need for European consolidation for years, and in recent speculation, the two large Finnish firms have been named as likely to merge.
'There are no such plans. When combining cultural issues and Brussels, I doubt whether it will ever be talked about,' Wahlroos told business daily Kauppalehti.
(Reporting by Tarmo Virki; Editing by Ben Tan) Keywords: UPM STORA/ tf.TFN-Europe_newsdesk@thomson.com ejp COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
