Selling pulp and power

Norwegian engineering company Aker Kvaerner announced yesterday that it has signed a letter of intent to sell its pulping and power businesses to Finland‘s Metso for about €335 million.

The companies said they plan to sign a final agreement by April 2006, pending due diligence by Metso and regulatory approval.

Metso Paper’s Fibre Business Line provides the pulp and paper industry with chemical, mechanical and recycled fibre technologies and related services. Metso has been growing the business in recent years.

Aker Kvaerner says the deal will free will free up financial and human resources to concentrate efforts on other core areas. It will continue to operate Pulping and Power until the transaction has been finally concluded.