METSA, Finland—Finland-based M-real has sold four of its coated paper mills to Sappi Ltd., the company announced last week. The deal, worth 750 million EUROS (US$101 billion) will see South Africa-based Sappi become one of the most dominant world players in ground wood-free coated paper.
Several M-real coated mills that Sappi did not buy, such as ones in Austria and Germany, will be shuttered. The deal will “fix” Sappi’s business in Europe and bring much needed consolidation to a “fragmented market,” Ralph Boettger, CEO of Sappi, said in statement. According to Jeff Tapping of M-real Canada, paper prices worldwide are sure to rise as a result of the consolidation. More details to follow as they become available. Contact: www.m-real.com