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European Commission challenges UPM and Sappi joint venture
The European Commission has issued a Statement of Objections to UPM-Kymmene Corporation and Sappi Limited, expressing concerns that their proposed joint venture could restrict competition in the communication paper markets.
As the two largest manufacturers of communication paper in the European Economic Area (EEA), the companies intend to combine their businesses in Europe and the US. The Commission's in-depth investigation, which began in April 2026, suggests that the merger could result in a market leader with enough power to increase prices and reduce product quality, particularly in the magazine paper and coated woodfree paper sectors.
UPM has stated that the Statement of Objections is a standard part of thorough merger investigations. The company maintains that the joint venture is a necessary step to ensure supply security for graphic paper customers in Europe and to strengthen the industry. UPM expressed confidence that it can address the Commission's preliminary concerns and is currently reviewing the case file alongside Sappi.
Entities
European Commission · European Economic Area · Sappi Limited · UPM-Kymmene Corporation
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The investigation specifically targets the magazine paper and coated woodfree paper markets. www.europeaninterest.eu
- [● 2 SOURCES] UPM and Sappi are the two largest manufacturers of communication paper within the European Economic Area. www.europeaninterest.eu · www.hallo-wippingen.de
- [○ 1 SOURCE] UPM expressed confidence in its ability to address the Commission's preliminary concerns. www.talouselama.fi
- [● 3 SOURCES] The Commission fears the joint venture could lead to higher prices and reduced choice for customers. www.talouselama.fi · www.europeaninterest.eu · www.hallo-wippingen.de
- [○ 1 SOURCE] UPM maintains that the joint venture is necessary to ensure supply security for graphic paper customers in Europe. www.talouselama.fi
- [● 3 SOURCES] The European Commission issued a Statement of Objections regarding the proposed joint venture between UPM and Sappi. www.talouselama.fi · www.europeaninterest.eu · www.hallo-wippingen.de