Ahlstrom and Munksjö review extended by European Commission

The European Commission has extended its review period for the combination of Ahlstrom's Label and Processing business and Munksjö.

Ahlstrom and Munksjö submitted a proposal last week to the commission related to the proposed combination of the Label and Processing business and Munksjö with respect to abrasive backings and pre-impregnated décor paper businesses.

The EU Commission has extended the review period of the remedy proposal until 7 June.

Ahlstrom proposed that the abrasive backings and pre-impregnated décor paper businesses, including two production lines in Osnabrück, Germany, will be divested to a third party in order to resolve the competition issues.

The commission opened an investigation into the combination in December 2012 citing competition concerns in the markets of pre-impregnated paper (PRIP) and abrasive paper backings, where the merged firm would have high market shares in the European Economic Area (EEA) and worldwide.