The Finnish Competition and Consumer Authority (FCCA) has officially approved the acquisition of Junnikkala Oy by Stora Enso Oyj, following a thorough investigation into the potential impacts on competition, particularly in the wood procurement sector.

Stora Enso announced its intention to acquire Junnikkala in October 2024. Junnikkala operates three sawmills located in Kalajoki, Oulu, and Oulainen, while Stora Enso has a sawmill in Veitsiluoto and a cartonboard mill in Oulu. The FCCA focused on how this acquisition would affect the log procurement markets in the areas surrounding these sawmills.

After careful analysis, the FCCA determined that the combined market share of Stora Enso and Junnikkala would remain moderate post-acquisition. The authority noted that there would still be multiple competing wood buyers in the region, which would help maintain competitive dynamics. Furthermore, the market power of the combined entity is lessened by the ability of competing buyers to expand their procurement areas if log prices were to fall.

The FCCA's decision includes certain business secrets related to the parties involved, and the full decision will be made public once these sensitive details have been redacted.

Stora Enso is recognized as a global leader in renewable products across packaging, biomaterials, and wood product industries, while Junnikkala specializes in producing sawn timber and value-added products for both domestic and export markets.