White & Case LLP - News - European Commission Gives Phase II Clearance for Metso's Acquisition of Aker Kvaerner's Pulp and Power Business

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European Commission Gives Phase II Clearance for Metso's Acquisition of Aker Kvaerner's Pulp and Power Business

Brussels, Helsinki, Stockholm, January 11, 2007 ... White & Case represented Metso Corporation ("Metso"), a Finnish multinational company, in the European merger control procedure (including a request for the examination of the operation to be referred from EU national competition authorities to the European Commission) over Metso's proposed acquisition of the pulp and power business of Norwegian conglomerate Aker Kvaerner ASA ("Aker Kvaerner"). The Commission, following an in-depth Phase II investigation opened as a result of potential competition concerns, approved the acquisition, finding that the transaction would not reduce competition on the markets involved.

Metso and Aker Kvaerner are both active worldwide in the development and production of equipment for pulp mills, and since this market is characterised by a small number of large players, this transaction, as with previous attempted acquisitions, faced a high level of antitrust scrutiny. The Commission's primary concern was that the combination of the two companies might substantially reduce competition in the market and this led it to open the Phase II investigation.

Metso proposed to divest the areas where its pulping machinery activities overlapped with Aker Kvaerner to Canadian firm GL&V. The Phase II investigation found that this divesture would enable GL&V to compete credibly against Metso and the market leader. Thus the transaction would maintain competition in the pulping machinery market. Moreover, it would generate significant benefits for customers by combining Metso's and Aker Kvaerner's complementary product scopes and knowledge of all the areas and technologies of a modern pulp mill, and enhance the development of environmentally and resource-friendly modern pulp and paper-making processes.

"Obtaining clearance for a transaction in the concentrated pulp and paper sector is always a challenge and having an in-depth knowledge of the industry is essential," commented White & Case partner Pontus Lindfelt. "We believe that the decision reached by the Commission is not only important for the companies involved in the transaction, but will also bring about significant benefits for customers."

The White & Case team representing Metso was led by partner Pontus Lindfelt, working closely with associates Krzysztof Kuik, Jérémie Jourdan and Vladimir Nyagolov and counsel Thomas Tindemans in Brussels and associate Fredrik Lindblom in Stockholm. The White & Case corporate team in Helsinki was led by partner Petri Haussila, working with associates Janko Lindros and Henrik Carlborg. The Metso in-house legal team was led by General Counsel Aleksanteri Lebedeff.

This is not the first time that White & Case Brussels has been involved in a case involving the paper industry. Back in November, the Brussels office represented Norwegian multinational Norske Skogindustrier ASA, the world's largest producer of newspaper paper, in the European Commission's investigation into a suspected cartel in the publication paper sector (Case No. COMP/39052). The investigation was closed without any finding that the companies involved had infringed EU competition law.

About White & Case
White & Case LLP is a leading global law firm with more than 2,000 lawyers in 35 offices in 23 countries. Our clients value the breadth and depth of our US, English and local law capabilities and rely on us for their complex cross-border commercial and financial transactions and for international arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients.

Contact:
James Martin
Media Relations Mgr EMEA, White & Case
44 0 20 7532 2853/ 44 0 7939 012 011

Alexandra Henderson
Media Relations Executive, White & Case
44 (0) 20 7532 2848

	Press Releases
Lawyers Petri Y. J. Haussila Pontus Lindfelt Janko Lindros Vladimir Nyagolov Locations Brussels Helsinki Stockholm	European Commission Gives Phase II Clearance for Metso's Acquisition of Aker Kvaerner's Pulp and Power Business Brussels, Helsinki, Stockholm, January 11, 2007 ... White & Case represented Metso Corporation ("Metso"), a Finnish multinational company, in the European merger control procedure (including a request for the examination of the operation to be referred from EU national competition authorities to the European Commission) over Metso's proposed acquisition of the pulp and power business of Norwegian conglomerate Aker Kvaerner ASA ("Aker Kvaerner"). The Commission, following an in-depth Phase II investigation opened as a result of potential competition concerns, approved the acquisition, finding that the transaction would not reduce competition on the markets involved. Metso and Aker Kvaerner are both active worldwide in the development and production of equipment for pulp mills, and since this market is characterised by a small number of large players, this transaction, as with previous attempted acquisitions, faced a high level of antitrust scrutiny. The Commission's primary concern was that the combination of the two companies might substantially reduce competition in the market and this led it to open the Phase II investigation. Metso proposed to divest the areas where its pulping machinery activities overlapped with Aker Kvaerner to Canadian firm GL&V. The Phase II investigation found that this divesture would enable GL&V to compete credibly against Metso and the market leader. Thus the transaction would maintain competition in the pulping machinery market. Moreover, it would generate significant benefits for customers by combining Metso's and Aker Kvaerner's complementary product scopes and knowledge of all the areas and technologies of a modern pulp mill, and enhance the development of environmentally and resource-friendly modern pulp and paper-making processes. "Obtaining clearance for a transaction in the concentrated pulp and paper sector is always a challenge and having an in-depth knowledge of the industry is essential," commented White & Case partner Pontus Lindfelt. "We believe that the decision reached by the Commission is not only important for the companies involved in the transaction, but will also bring about significant benefits for customers." The White & Case team representing Metso was led by partner Pontus Lindfelt, working closely with associates Krzysztof Kuik, Jérémie Jourdan and Vladimir Nyagolov and counsel Thomas Tindemans in Brussels and associate Fredrik Lindblom in Stockholm. The White & Case corporate team in Helsinki was led by partner Petri Haussila, working with associates Janko Lindros and Henrik Carlborg. The Metso in-house legal team was led by General Counsel Aleksanteri Lebedeff. This is not the first time that White & Case Brussels has been involved in a case involving the paper industry. Back in November, the Brussels office represented Norwegian multinational Norske Skogindustrier ASA, the world's largest producer of newspaper paper, in the European Commission's investigation into a suspected cartel in the publication paper sector (Case No. COMP/39052). The investigation was closed without any finding that the companies involved had infringed EU competition law. About White & Case White & Case LLP is a leading global law firm with more than 2,000 lawyers in 35 offices in 23 countries. Our clients value the breadth and depth of our US, English and local law capabilities and rely on us for their complex cross-border commercial and financial transactions and for international arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients. Contact: James Martin Media Relations Mgr EMEA, White & Case 44 0 20 7532 2853/ 44 0 7939 012 011 Alexandra Henderson Media Relations Executive, White & Case 44 (0) 20 7532 2848