Working with local partners and in joint ventures in selected markets is a strategy that works well for SCA. This deal in Australasia enables a more efficient financing as well as it increases the speed of development of the operations, according to a press statement from SCA.SCA’s operations in Australia, New Zealand and Fiji employ about 1,500 people. In 2010, this business had net sales of 4,400 million Kronor, with some 70 percent related to tissue and some 30 percent related to personal care products. In the region, SCA manufactures and markets a number of brands including Tena, Tork, Sorbent, Purex, Libra, Treasures, Deeko and Handee Ultra.The transaction involves a deconsolidation of the business, which will be financially reported as a joint venture according to the equity-share method.In connection with the refinancing of the business and the divestment of 50 percent of the equity, SCA will receive 3,200 million Kronor. Also, there will be a 700 million Kronor write-down of the tangible book value, which will impact the result in the fourth quarter of 2011.“This deal strengthens our operations in Australia and New Zealand, and it secures our access to local competence and the local capital market. This enables a faster development of the operations”, says Jan Johansson, CEO of SCA.The deal will be subject to approval from relevant authorities. Closing is expected to happen within two to three months. /KB