Enso Oy, one of the biggest integrated forest companies in Europe, was created as a result of a merger between Enso-Gutzeit Oy and Veitsiluoto Oy in 1996. Two years later in 1998, Enso Oy and Stora Ab were combined to form the world’s largest paper company Stora Enso Oyj.

The power grids owned by Imatran Voima Oy and Pohjolan Voima Oy were amalgamated into Finnish Power Grid plc (Fingrid), a new company specifically established for this purpose. It commenced operations in the autumn of 1997. The company’s mission is to promote the operation of the deregulated Nordic electricity market.

The old agreement between the State and the utility companies in northern Finland giving the right to buy electricity generated by Kemijoki Oy below market rates was terminated in 1997. Moreover, the State sold its hydropower shares in Kemijoki Oy to Imatran Voima Oy, UPM-Kymmene Oyj, Enso Oyj, and to power distribution companies in northern Finland.

Oy Sisu Ab was merged with Partek Corporation at the beginning of 1997, making the State the biggest shareholder in the new engineering company.

Imatran Voima Oy and Neste Oyj merged in 1998 to form the energy group Fortum Corporation.

In 1998, Alko-Yhtiöt Oy was split into three divisions. Administrative control of one of these divisions, Altia Group Ltd, a company engaged in the production and wholesale of alcoholic beverages, was taken over by the Ministry of Trade and Industry.

In 1998, Valmet Corporation merged with Rauma Oyj, which led to the creation of a global forest and wood-processing machine construction corporation by the name of Valmet-Rauma Oyj, subsequently renamed Metso Plc.

Leonia Plc was formed as a result of the combination of Postipankki Bank and Finnish Export Credit Ltd. In 2000, Leonia was merged with Sampo Oyj to create the bank and insurance group Sampo Oyj.

Sonera Corporation and the Swedish Telia AB merged in 2002 to become TeliaSonera AB, the leading telecom operator in the Nordic countries and Baltics. The State of Finland holds a 13.7% interest in the company.

Kemira GrowHow Oyj was demerged from Kemira Group in 2004 and listed on the Helsinki Stock Exchange. In 2007, the State sold all its holdings in Kemira GrowHow.

The oil business of Fortum Corporation was spun off from the Group to form Neste Oil Corporation which was subsequently listed in 2005.