Cascades, Reno De Medici merger receives two more approvals

By Lisa Kerner

Charlotte, N.C., Feb. 7 - Competition authorities in Germany and Italy have approved the merger of Cascades Inc.'s European division, Cascades SA, and Reno De Medici SpA.

The companies expect to sign the definitive agreements needed to complete the merger by the end of February.

"This merger results in an operationally and financially stronger company that will be better able to respond to the demands of global customers and shareholders," Cascades president and chief executive officer Alain Lemaire said in a company news release.

Reno De Medici shareholders approved the merger in October.

As previously reported, the companies signed a letter of intent in June 2007 in which Cascades SA would reorganize its recycled cartonboard business by contributing it, debt free, to a newly incorporated Italian subsidiary of Cascades SA, which would then be merged into Reno De Medici for some 115.6 million Reno De Medici ordinary shares.

The transaction was originally expected to close by the end of 2007.

Cascades, based in Kingsey Falls, Quebec, produces, transforms and markets packaging and tissue products composed mainly of recycled fibers.

Reno De Medici, based in Milan, produces, transforms and markets cartonboards.

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