29.9.1999 Official Journal of the European Communities L 254/9 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 25 November 1998 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement (Case No IV/M.1225 — Enso/Stora) (notified under document number C(1998) 3653) (Only the English text is authentic) (Text with EEA relevance) (1999/641/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to the Agreement on the European Economic Area, and in particular Article 57 thereof, Having regard to Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings ('), as amended by Regulation (EC) No 1310/97 (3), and in particular Article 8(2) thereof, Having regard to the Commission decision of 31 July 1998 to initiate proceedings in this case, Having given the undertakings concerned the opportunity to make known their views on the objections raised by the Commission, Having regard to the opinion of the Advisory Committee on Concentrations (%), Whereas: (1)  On 18 June 1998, the Commission received a noti- fication of a proposed concentration pursuant to Article 4 of Regulation (EEC) No 4064/89 (hereinafter referred to as ‘the Merger Regulation’ by which Enso Oyj (Enso) enters into a full merger with Stora Kopparbergs Bergslags AB (Stora). The newly merged company will be named Stora Enso Oyj (Stora Enso). () O] L 395 30.12.1989, p. 1; corrected version O] L 257, 21.9.1990, p. 13. () OJ L 180, 9.7.1997, p. 1. O] C 275, 27.9.1999. () After examining the notification, the Commission has concluded that the notified operation falls within the scope of the Merger Regulation. The Commission decided to initiate proceedings pursuant to Article 6(1)(c) of the Merger Regulation on 31 July 1998. I. THE PARTIES Enso is an industrial group active in the forest industry, in particular in wood-based fibre products. Its activities consist of wood procurement, paper and board manu- facturing, pulp and sawmilling. Enso is also active in merchanting. Enso is incorporated in Finland where it has its main activities. Enso has production plants in other European countries as well — in particular, in Germany and in the Baltic States — and in Asia. Stora is an industrial group with operations in the forest industry. Stora produces pulp, paper and board and is active in sawmilling. Stora is incorporated in Sweden where it carries out its main business. Stora has produc- tion plants also in other European countries too — Germany, in particular — and in Canada. II. THE OPERATION The operation is a ‘merger between equals’ and will be carried out by way of a public bid for all Stora's shares, announced on 2 June 1998, under which Stora's share- holders will receive newly issued shares in Enso.