The Finnish Competition and Consumer Authority (FCCA) investigated the effects on competition of Stora Enso Oyj’s acquisition of Junnikkala Oy, particularly regarding the procurement of wood in the parties’ procurement areas. According to the FCCA’s assessment, the acquisition does not have negative competition effects, and therefore the authority unconditionally approved the acquisition on April 14, 2025.
In October 2024, Stora Enso announced its intention to acquire the entire share capital of the sawmill and processing company Junnikkala. Junnikkala operates three sawmills located in Kalajoki, Oulu, and Oulainen. Stora Enso, on the other hand, has a sawmill in Veitsiluoto and a cartonboard mill in Oulu.
The FCCA examined how the acquisition would impact the log procurement markets in the procurement areas of Stora Enso’s Veitsiluoto sawmill and Junnikkala’s Oulu sawmill. The procurement markets refer to the procurement of wood made by companies from forest owners.
"The purpose of merger control is to ensure that the markets do not become harmfully concentrated as a result of the acquisition. Therefore, it was important to ensure that there remains sufficient competition in the wood procurement markets before approving the acquisition."
Based on the FCCA’s investigation, the combined market share of the parties remains moderate after the acquisition, and there will continue to be several competing wood buyers in the area. The market power of the parties is also mitigated by the fact that competing buyers can expand their procurement areas if log prices were to decrease. Additionally, the raw material needs and wood procurement strategies of the parties differ from each other.
The decision issued by FCCA contains business secrets of the parties involved. The decision will be published after the business secrets have been redacted.
About the parties involved in the acquisition
Stora Enso Oyj is a global manufacturer of renewable products in the packaging, biomaterials, and wood product industries.
Junnikkala Oy is a Finnish sawmill company whose business consists of the production of sawn timber and value-added products for both export and domestic markets. Junnikkala’s sawmills are located in Kalajoki, Oulu, and Oulainen.