Kemira Agro the sticking point in IK deal. (Finland).(proposed merger of Kemira with Dynea and Sydsvenska Kemi derailed by Finnish government)(Brief Article)

Nitrogen & Methanol, January, 2002

Scandinavia's chemical industry, which looked to have been heading for a massive shake-up following the proposed merger of Kemira with Dynea and Sydsvenska Kemi (SSK), is now back to square one after Finnish government, 56% majority owners of Kemira, pulled out of the deal with Swedish conglomerate Industri Kapital (IK), owner of Dynea and SSK.

The deal, which would have created a [euro]4.3bn group with 16,000 employees, would have required the Finnish government to sell its 56% stake in Kemira to Dynea, in return for a 34% stake in the new merged group and a [euro]100m lump sum. Dynea had also agreed to buy out Kemira's minority shareholders at a price of [euro]9.1/share - a 33% markup. However, the Finnish government required parliamentary approval for the...

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