Finnish authority clears Binder’s purchase of Kuhmo Oy

Finland’s Competition and Consumer Authority has approved the sale of Kuhmo Oy and its property company, Juntinsalo Oy, to Austria’s Binder Beteiligungs AG, Yle reported. Binder Beteiligungs said on Monday that the deal was completed the day after the authority’s decision.

The authority said the acquisition would not substantially impede effective competition in Finland. The companies’ combined market share will be high in the market for sawmill chips in North Karelia, but those chips are supplied beyond the region and alternative suppliers operate there. The authority’s market consultation also found no evidence of harmful effects on competition.

Binderholz Nordic, Binder Group’s Finnish wood-processing company, operates sawmills in Lieksa and Nurmes and further-processing operations in Lieksa. Kuhmo Oy runs a sawmill in Kuhmo, while Juntinsalo owns the mill’s industrial properties and buildings, as well as forest holdings. Juntinsalo also shares control of Kuhmo Lämpö Oy with the city of Kuhmo; the sawmill supplies the company with wood fuel.

The acquisition will double Binderholz Nordic’s use of logs. The group now processes two million solid cubic metres of logs annually. Kuhmo Oy employees’ employment terms will not be affected, and Binderholz Nordic said it aims to continue working with local forest owners, contractors, transport companies and other stakeholders.