In Sweden, state-owned company and the country's largest forest owner Sveaskog AB and Mellanskog, Sweden's second largest forest owners' association have announced the signing of a Letter of Intent (LoI) regarding the sale of Sveaskog's holding in wood processing company Setra Group AB to Mellanskog. The ownership change is planned to be executed during the first quarter of 2025.
Setra Group is 50 percent owned by Sveaskog and 49.5 percent by the Mellanskog. The remaining 0.5 percent is owned by approximately 1,400 smaller shareholders.
The sale means that Mellanskog acquires Sveaskog’s total stake in Setra Group.
Setra Group is one of Sweden’s largest wood processing companies and contributes to Swedish exports of wood products.
The company’s production facilities process forest raw materials into sawn and planed wood products, glulam, cross-laminated timber (CLT), and components for construction and housing.
Additionally, the by-products are used for domestic energy production such as wood pellets, and pyrolysis crude oil.
In line with a parliamentary decision
Sveaskog is Sweden’s largest forest owner with 14 percent of the country’s forest estate. The company is owned by the Swedish state and is an independent player without major interests as an end-user of forest raw materials.
The ownership change is in line with Sveaskog’s strategy to be a responsible forest owner and a previous parliamentary decision from 2009.
As an owner, it is our task to create optimal conditions for the company’s future as a competitive and profitable company. I am therefore pleased that we have now reached an agreement with Mellanskog for them to take over our shareholding. Through the deal, the company can develop and create long-term value for its owners. We have proudly been an owner in Setra and I look forward to continued good cooperation, said Erik Brandsma, CEO at Sveaskog.
Mellanskog is a forest owners’ association with an operational area from Gotland in the south to Härjedalen in the north and is owned by approximately 28,200 members.
The association’s main task is to create as much value as possible for the association’s members.
Mellanskog believes in wood as a material and looks forward to continuing to develop Setra as one of Sweden’s largest wood industry companies. The acquisition is well in line with our long-term business strategy and will strengthen Mellanskog’s members, said Fredrik Munter, CEO of Mellanskog.
