Metsä Group's parent company Metsäliitto Cooperative announced that it has reached an understanding with Mutares on the divestment of the entire share capital of Metsä Wood France SAS. Mutares submitted an irrevocable offer to Metsäliitto Cooperative, Metsä Group said.

The contemplated transaction will now be subject to the information and consultation process of employee representatives of Metsä Wood France.

With the contemplated transaction Metsä Wood would discontinue the upgrading and distribution operations in France and the employees of Honfleur and Boulleville units, a total of 115 employees, would automatically transfer to the buyer. Metsä Wood's sales operation of sawn timber, plywood and Kerto LVL products would continue in France. As a part of the contemplated transaction, the parties will agree on commercial cooperation in the supply of sawn timber for the upgrading operations.

Contemplated transaction will support Metsä Wood's industrial efficiency strategy enabling Metsä Wood to focus on its core businesses - industrial scale production and sales of Nordic sawn timber, plywood and Kerto LVL as well as the timber upgrading and distribution operations in the UK.

The contemplated transaction is estimated to have a negative non-recurring impact of approximately Euro 20 million on Metsä Group's second quarter 2015 operating result. The contemplated transaction is estimated to be completed at the end of October 2015 at the latest.