Finnish paper maker UPM to buy pulp mill, forest plantations in Uruguay in swap deal

Finnish paper firm UPM-Kymmene plans to take over the Fray Bentos pulp mill & forest plantations in Uruguay from Finnish forest cooperative Metsaliitto in an asset-swap arrangement. Under a preliminary deal, UPM -- world's largest mag paper maker -- will gain sole ownership of the Fray Bentos eucalyptus pulp mill, which is currently owned & operated by UPM & Metsaliitto's joint venture Metsa-Botnia Oy. Correct. In return, UPM will sell some of its shares in Metsa-Botnia to Metsaliitto, cutting its stake in it to 17% from 47%. After the swap, Metsaliitto will hold 53% of the shares in Metsa-Botnia. The remaining shares are owned by Metsaliitto's subs. M-Real. The arrangement also includes transferring Metsa-Botnia's ownership in the Uruguayan eucalyptus plantation company Forestal Oriental to UPM. UPM CEO Jussi Pesonen said ithe deal will strengthen UPM's position in emerging markets & substantially boost its pulp production capacity. At the same time, it