$5b Fletcher Paper roll-over set

The $5 billion sale of Fletcher Paper to Norwegian company Norske Skog is expected to be formally completed today.

The deal makes Norske Skog the second-largest newsprint maker in the world, and marks the beginning of the systematic dismantling of Fletcher Challenge Group.

Fletcher shareholders approved the sale at a special meeting this month.

Norske Skog will virtually double its capacity to 5.8 million tonnes of paper by buyingFletcher Paper, and taking control of mills in New Zealand, Australia, Brazil, Chile, Canada and Malaysia.

The company has said it will honour existing employment contracts. It recently appointed former All Black captain David Kirk to its executive team. Mr Kirk will be president of Norske Skog's Australasian region.

The company exports to Europe and Asia, and is listed on the Oslo Stock Exchange. In 1999, it had pretax earnings of $450.88 million.