Rethinking Corporate Governance The Forming of Operative and Financial Strategies in Global Corporations
The Forming of Operative and Financial Strategies in Global Corporations
Chapter 12: From Stora Kopparberg to Stora Enso: towards a grand merger
In the early 1980s, Stora Kopparberg gave priority to its expansion into fine paper. As noted in Chapter 11, CEO Berggren had proposed that the company make a non-cash acquisition of Papyrus, while Nymölla would get Grycksbo, Newton Falls and a 50 per cent holding in Pegenova from Stora Kopparberg. Nymölla would then change its name to Papyrus and continue as a listed fine paper company. Berggren noted that such a ‘new Papyrus’ would thus have the strongest marketing and distribution organization for fine paper in the region and would be capable of developing a unique and broad product repertoire without arousing conflicts of interests inside the family sphere. A larger and more focused Papyrus would possess the necessary resources for extensive product development and expansion abroad. All in all, the company could become one of the strongest units on the European fine paper market. Wallenberg hesitated, as he was not convinced that the suggested re-shuffling of units would work in practice. However, Dahlbäck supported Berggren, and the two convinced Wallenberg to change his mind. In those talks, Berggren suggested even more far-reaching structural plans for the Wallenberg family’s forest-based industrial group with Stora Kopparberg as the hub. He wanted to see Stora Kopparberg acquire (in turn) Papyrus, Billerud and Swedish Match.
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