Paper-based packaging producer Billerud has had its merger deal with Kinnevik approved by the EU Commission after the parties agreed to certain conditions.
Swedish investment company Kinnevik owns rival paper company Korsnäs and promised to sell a paper machine at a production unit in Gävle to address competition concerns.
The Commission said the deal had raised competition concerns as it would have combined the two leading suppliers of white sack kraft paper and the first and third suppliers of white MF/UG kraft paper in the European Economic Area (EEA), resulting in very high market shares.
The deal was assessed on a number of markets where the merging parties' activities overlap, in kraft paper, corrugated case materials and liquid packaging board.
Billerud manufactures kraft and sack paper, liquid board and cup stock for the dairy, beverage and fresh food industries and the deal is expected to bring an annual turnover exceeding SEK 20bn (€2.3bn).