Exactly. That’s why many acquisitions end up being unprofitable for the buyer or the payback period is very long. In this case, magazine and fine paper capacity in Europe will need to be closed indefinitely at a varying pace depending on the economic cycle (as well as what happens on other continents, including China and potential tariffs). Personally, I see that this JV could make sense for both through controlled capacity closures and pricing power (investment needs are very low, maintenance only). I see the biggest risk as the competition authorities not approving it or the conditions being harsh. In the European shakeout, this JV would be in a strong position (vs Norske etc.).
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