Brigl & Bergmeister Uetersen paper mill acquisition halted

At locations in Austria and Slovenia, Brigl & Bergmeister manufactures wet strength and non-wet strength label papers as well as flexible packaging papers.

In May 2014, Brigl & Bergmeister signed an agreement for acquisition of the Uetersen specialty paper mill from the Stora Enso Group, subject to merger control approval.

In September, the German Federal Cartel Office expressed reservations over the merger. Both parties subsequently submitted further market information and expert reports, none of which, however, managed to persuade the German Federal Cartel Office to change its stance.

Consequently, Brigl & Bergmeister withdrew the merger application on October 9. As a result, the contracting parties have mutually agreed to cancel the share purchase agreement.

A statement from Brigl & Bergmeister reads: ‘[We] regret the decision made by the German Federal Cartel Office. The label market would have benefited substantially from the acquisition of the Uetersen paper mill. The merger would have created a strong group of speciality paper mills and provided positive impulses throughout the entire value chain.’