Austria-based Mayr Melnhof Karton is all set to acquire 100% of the shares in Södra Cell Folla and take over Södra's pulp mill in Follafoss, Norway.
Both the companies, which planned to close the deal during the first quarter of 2013, have signed a Letter of Intent in this regard.
Södra announced its intention to divest the mill earlier in 2012, and its pulp mill in Follafoss has a capacity of 105,000 tpy of CTMP pulp.
Mayr Melnhof expects to resume operations at Folla early in 2013. The company manufactures folding cartons and its business is focused on MM-Karton and MM-Packaging.