19.10.09. Stora Enso and Arauco have completed the acquisition of the majority of Grupo ENCE's operations in Uruguay announced on 18 May 2009. The joint acquisition on a 50/50 basis includes approximately 130 000 hectares of owned land and plantations, 6 000 hectares of leased lands and other operations owned by Grupo ENCE in the central and western areas of Uruguay, Stora Enso said in a press release received by Lesprom Network.

As previously announced, the enterprise value of the transaction, which was completed ahead of the original target of the end of 2009, was $344 million, including $33 million of assumed debt. Stora Enso's share of the enterprise value is 50%.

“I'm very proud that our team in seamless co-operation with Arauco has been able to finalise this project ahead of the original schedule. That is a promising start and will give us a solid platform to go forward with our joint venture and plans in Uruguay,” says Stora Enso CEO Jouko Karvinen.

“Cost-competitive plantation-based pulp is an essential part of Stora Enso's strategy and in one step, this transaction has secured the strategic raw material supply for a world class pulp mill in Uruguay that we are planning jointly with Arauco.”

Stora Enso and Arauco have established a 50/50 joint venture to combine their existing assets in Uruguay. The parties will integrate the assets acquired from Grupo ENCE into this joint venture, creating a total land base of approximately 250 000 hectares, nearly half of which is planted with hardwood and softwood.

Stora Enso and Arauco have not taken any investment decision concerning the construction of a pulp mill in Uruguay.

Fuente: Lesprom