Metsäliitto to take majority stake in Metsa-Botnia

Metsäliitto Group is to become the majority owner of Metsa-Botnia after concluding a share purchase agreement with UPM.

The majority of Metsa-Botnia’s business is pulp production, with four pulp mills in Finland, but the group also comprises the 200,000m³ sawn softwood capacity Svir Timber sawmill in Russia.

The deal sees Metsäliitto buy a 30% shareholding in Metsa-Botnia from UPM, which increases Metsäliitto’s stake in the company from 23% to 53%.

The arrangement, which needs approval by competition authorities, will have a €100m negative net effect on Metsäliitto’s cash flow, increasing net debt by around €150m.

After completion, scheduled during the fourth quarter, Metsä-Botnia will become a subsidiary of Metsäliitto.