Smurfit may pull out of French mill

The Jefferson Smurfit Group has begun discussions with CVC Capital Partners about the possible sale of Smurfit's interest in the Condat mill in France. The group acquired its holding in the mill through its acquisition of the Cellulose de Pin paper and packaging interests of the French Industrial group, Saint Gobain in 1994.

The Condat mill produces coated wood-free paper and is estimated to have up to a 20 per cent share of the French market. Smurfit has informed the mill's works' council about the ongoing talks. CVC Capital Partners is one of the most active independent private equity investor groups in Europe and already owns a majority stake in Cartiere del Garda, a similar coated wood-free mill. In a statement yesterday, Smurfit said the discussions may lead to the sale of all or part of its interest in the mill.