Arjowiggins in EC Merger Control Investigation

June 4, 2008

Cleary Gottlieb represented French paper manufacturer Arjowiggins before the European Commission in connection with its proposed takeover of the Zanders Reflex paper production mill, located in Germany, from M-Real.  After having opened an in-depth investigation, the EC cleared the transaction on June 4, subject to the divestiture of Zanders Reflex’s carbonless auto copy paper business.

The European Commission considered potential antitrust implications in the carbonless auto copy paper market but finally accepted Arjowiggins’ argument that the transaction did not have any negative impact on the markets for premium fine paper and tracing paper.

Arjowiggins, a subsidiary of Sequana Capital (formerly known as Worms & Cie), is one of the world's largest manufacturers of specialty paper, communication paper and security/technology paper, with revenues of approximately €2 billion per year.

The Zanders Reflex mill is currently operated by the paper manufacturer M-Real (a subsidiary of the Finnish forest industry group Metsäliitto) and produces carbonless auto copy paper, premium fine paper and tracing paper.