Cairo (APD) - The American International Paper Company (IP) said it bought a 65% stake in the Morocco's Groupe CMCP or Compagnie Marocaine des Cartons et des Papiers, the state-opreated Maghreb Arabe Press, reported Saturday.
The American International Paper Company, world's largest paper products company, acquired the 65% stake in the leading Moroccan packaging company in a $80 million deal in addition to assuming assumed debt of $40 million.
Following completion of the deal, Groupe CMCP will become part of International Paper's European Container business.
"Morocco is an attractive market for International Paper's packaging business," said Paul Brown, vice-president of International Paper's European Container business. "The country has a rapidly growing economy with low inflation and recently signed free-trade agreements with the European Union and the United States."
Groupe CMCP, based in Casablanca, Morocco, has 1,500 employees and operates four box plants and one recycled containerboard mill in Morocco. It produces corrugated packaging materials for the industrial and agricultural markets.
International Paper's European Container business has 3,200 employees and operates 25 box plants and 2 corrugated containerboard mills in France, Ireland, Italy, Spain, the United Kingdom, and through a joint venture in Turkey. [EW-FC]
APD (Arab Press Digest) 2005
