<B>EC Expects to Block SCA Purchase of Metsa Tissue</B>

The European Commission is expected to block SCA’s purchase of Metsa Tissue, according to Reuters.

SCA, based in Sweden, recently announced plans to acquire G-P mills in the United States. Metsa is based in Finland.

The Commission has until February 9 to deliberate on the SCA/Metsa Tissue deal. But the source said the decision to block the deal would be announced on Wednesday, unless the companies decided to withdraw from the planned acquisition.

"They have not come up with the necessary concessions and they are way beyond the deadline for the concessions," the source said.

On September 28, the Commission opened an in-depth probe into Svenska Cellulosa AB's bid for 66 percent of Metsa Tissue Oyi amid concern the deal would create a dominant force in the market for hygienic tissue products, particularly in the Nordic region.

Under EU merger rules, companies have until one month before the probe's deadline -- February 9 in this case -- to offer concessions to meet EU competition concerns.

The SCA/Metsa Tissue deal is part of a complicated exchange of assets between SCA and Finnish papermaker Metsa-Serla.

The Commission has already authorized, with conditions, Metsa-Serla's purchase of Modo and SCA Packaging's acquisition of Metsa Corrugated. Reuters.