Brussels, December 22, 2006 — Shearman & Sterling advised US specialty paper manufacturer P.H. Glatfelter Company on EU antitrust aspects of its acquisition of the Lydney paper mill from UK paper supplier J.R. Crompton Ltd.  The Lydney mill employs about 240 people and had 2005 revenues of approximately $75 million.  The mill produces a broad portfolio of specialty paper, in particular, teabag paper and paper for coffee pods.  Glatfelter is the largest supplier of these products worldwide.

The European Commission cleared the transaction without conditions on December 20, seven weeks prior to the official end of Phase II.  The Commission’s in-depth review confirmed that the transaction will not impede effective competition despite the high combined share of sales and production capacity.

Glatfelter was advised by Shearman & Sterling partner Annette Schild and associates Stephanie Birmanns and Andreas Kafetzopoulos (all Brussels, Antitrust).