Ahlstrom and Owens Corning have terminated an agreement regarding the planned divestiture of Ahlstrom’s Building & Wind business unit to Owens Corning following challenges associated with obtaining regulatory clearance in Germany for the transaction.

Ahlstrom will continue to operate and develop the Building & Wind business unit as before and it will be reported as part of the Filtration & Performance segment. In 2015, net sales of the Building & Wind business unit were €83.5 million and the adjusted operating profit was €5.9 million. In January-March 2016, net sales amounted to €23.5 million and the adjusted operating profit was €2.1 million.

“In 2015 we were approached by Owens Corning to acquire the Building & Wind business unit and engaged in exclusive negotiations with them. Following the unexpected challenges with the German competition authorities, and after careful consideration, we have decided to keep the business intact as part of the Ahlstrom portfolio of innovative fiber-based materials. The performance of the Building & Wind business unit, as that of the entire Ahlstrom Group, has clearly improved since negotiations were initiated and the business is today contributing positively to our profitability and cash flow,” says Marco Levi, president and CEO. “We are fully committed to serving our customers and reinforcing the unit’s competitive position. The business will contribute to our strategic goals of adjusted operating profit margin above 8% by 2018 and maintaining gearing below 100%.”

The divestment was announced in January; the German competition authority opened a second-phase investigation into the planned transaction in early April.