The Commission cleared, subject to conditions, the proposed merger between Munksjö AB, of Sweden, and the label and processing paper business of Ahlstrom Corporation, of Finland. Munksjö is a Swedish-based manufacturer of high value-added paper products in seven product areas (decor paper, abrasive backings, electrotechnical paper, fine art paper, pulp, Spantex and thin paper). Ahlstrom is a Finnish manufacturer of high performance materials. The transaction only concerns Ahlstrom's label and processing business which includes decor paper, abrasive paper backings and electrotechnical paper. The Commission found that the proposed merger brings together the only two manufacturers of heavy weight abrasive paper backings, used in abrasive products, in the EEA, and the two leading players in the global market. Further, the proposed merger would bring together two of the three European manufacturers of pre-impregnated paper (“PRIP”), a type of décor paper used by furniture manufacturers (e.g. IKEA). The Commission was concerned that the proposed concentration, as initially notified, would have given the merged entity excessive market power toward consumers, ultimately leading to higher prices throughout the value chain. To address the Commission’s concerns, the parties offered to divest Ahlstrom's abrasive paper backings and PRIP business located at Osnabrück, Germany. In view of the commitments, the Commission concluded that the proposed acquisition would not significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 24/5/2013