Kinnevik Wins EU Approval to Take Billerud Stake in Korsnaes Bid

Investment AB Kinnevik (KINVB) won European Union approval to take a stake in Billerud AB (BILL) after it agreed to sell a paper machine.

Kinnevik sought EU authorization to take the stake as part of the sale of its packaging unit Korsnaes to Billerud, Europe’s second-largest manufacturer of sack paper. It offered to divest a Korsnaes machine along with related assets and personnel making all of the unit’s white sack kraft paper. It will also offer supply deals to the machine’s purchaser.

Billerud agreed to buy Korsnaes stock from Kinnevik and issue 2 billion kronor ($300 million) of new shares to help finance the transaction, it said in June. Kinnevik will get 3.2 billion kronor in cash and 25.1 percent of the votes in Billerud, it said at the time.

To contact the reporter on this story: Aoife White in Brussels at awhite62@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.

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