Papermaker UPM, which owns a UK mill in Shotton, is currently in discussions to potentially buy the Finnish publication paper company Myllykoski Group.
UPM is considering a deal to purchase the company’s operations in Finland, Germany and the US. It operates seven paper mills with a total annual capacity of nearly three million tonnes, some of which is recycled fibres.
In a statement from UPM it said: “At the present time, the discussions continue and a number of significant issues remain unresolved. Therefore, there can be no certainty that the discussions between UPM, Myllykoski and its lenders will result in a transaction.”
It said it will announce the outcome of the discussions if they reach a conclusion which allows public disclosure.
A statement from Myllykoski said: “Myllykoski has been in negotiations with its financiers on its debt. The negotiations have been prolonged, but continue in a positive spirit.
“The company has been engaged in negotiations with various partners regarding structural arrangements. Negotiations with UPM are ongoing and thus Myllykoski will not comment on this at this stage.”
According to business wire Reuters, Myllykoski made an operating loss of€12m while its interest-bearing net debt was €489m.