The European Commission has restated its serious concerns about the planned graphic paper Joint Venture between UPM and Sappi, sending the parties a Letter of Facts that they are now analyzing and responding to. UPM said it disagrees with the Commission's preliminary assessment and will keep engaging with the review, arguing the Joint Venture would support the long-term competitiveness, sustainability and resilience of the European graphic paper industry. To address the Commission's concerns, the parties plan to submit proposals for specific remedies, but not divestments, given the rationale of the transaction. The review comes as the Commission updates its competition policy approach, reflected in draft revised Merger Guidelines published on April 30, 2026, and as European graphic paper demand has more than halved over the past two decades due to digitalization. UPM and Sappi announced the planned Joint Venture in 2025 and signed the definitive agreement in May 2026; most jurisdictions, including China, South Africa and the U.S., have already approved it, and the European Commission's final decision is expected by year-end or shortly thereafter, with the Joint Venture becoming operational upon closing.
UPM-Kymmene OyjEU Commission restated serious concerns and sent a Letter of Facts over UPM's planned graphic paper JV with Sappi, threatening the deal.
Lisi S.AEU Commission restated serious concerns and sent a Letter of Facts over Sappi's planned graphic paper JV with UPM, threatening the deal.
