Aarhus and Karlshamns to merge

Aarhus United A/S and Karlshamns AB have announced their intention to form a combined company, called Scandinavian Industrial Group. Aarhus United and Karlshamns are both leading manufacturers of high value-added speciality vegetable oils and fats in a highly competitive market.

The parent companies, United International Enterprises and Melker Schörling AB, intend to form a new company, offering an exchange of existing shares in the two companies for a combination of shares in the new company and cash. The name of the new company will be Aarhus-Karlshamns AB. The Supervisory Board of Aarhus United sees the proposed merger as “very interesting” and presumes that it will include “considerable synergies”. According to Karlshamns MD, Jerker Hartwall “this merger brings possibilities to grow faster, reduce costs and it brings possibilities to coordinate investments”.

The combination of Aarhus United and Karlshamns will create a stronger producer of high value-added speciality vegetable oils and fats. In 2004, Karlshamns’ operating profit  amounted 20 million USD. Karlshamns is Scandinavia’s largest supplier of vegetable oils and fats; the food industry its major customer segment. Aarhus United had an EBIT (operating income) of 40 million USD in 2004.

Source: Aarhusunited.com, karlshamns.com

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