28 Sep 2005

Competition authority shelves Union issue

Norske Skog has been notified today by the Norwegian Competition Authority that its conduct over the recommendation to close the Norske Skog Union mill has not contravened section 11 of Norway's Competition Act, which prohibits the abuse of a dominant market position.

The authority finds that neither the Act nor relevant practice provides any basis for compelling Norske Skog to sell Norske Skog Union.
 
In the authority's view, weighty considerations argue in favour of allowing companies a free hand to restructure their activities to ensure efficient operation.
 
This decision is entirely in accordance with Norske Skog's expectations over the issue.
 
The management's recommendation to close down Norske Skog Union will be considered by the Norske Skog board of directors and corporate assembly on 3 and 4 October respectively.
 
Oxen°en, 28 September
Norske Skog
Corporate communications