According to UPM CEO Jussi Pesonen, the deal will help to make UPM more profitable and cost-effective. The world's largest publication paper producer hopes synergy benefits from the merger will bring it annual profits of one hundred million euros. Pesonen says that shareholders come out as the big winners in the deal.
Speaking of the Myllykoski factory in Anjalankoski, Pesonen added that no factories would be getting special treatment, as all factories must be fully competitive.
The news comes a week after Myllykoski announced that it was starting consultative talks on the reduction of jobs, aimed at saving the company 30 million euros. According to UPM, the new deal will not halt the talks, as both companies will continue operating independently until the deal is closed. This could still be half a year away, in the second quarter of 2011.
The deal must still be approved by competition authorities.