EU Commission raises concerns over UPM-Sappi graphic paper joint venture
The European Commission has told UPM and Sappi it is not convinced their planned EUR 1.42bn (USD 1.59bn) graphic paper joint venture would deliver enough cost, environmental or resilience benefit to offset the risk of higher prices, reduced choice and lower quality for customers. UPM says the project is on schedule, with bank financing secured and the leadership named, and expects a decision in early November 2026 after an oral hearing on 15 September 2026. UPM argues the pricing concern does not hold in a market that has shrunk from 40 million tonnes in 2008 to 13 million tonnes in 2025 with 30 per cent overcapacity.
Why this mattersA Commission block would scupper Europe's main consolidation route for shrinking graphic paper capacity, leaving overcapacity and closure decisions to individual producers.
- The proposed joint venture is valued at EUR 1.42bn (USD 1.59bn), according to The Capitol Forum
- The Commission says it is not convinced the combination offers sufficient savings, environmental or resilience benefits to outweigh possible harm, citing higher prices, less choice and lower quality
- An oral hearing was held on 15 September 2026; UPM expects a decision in early November 2026, with the joint venture due to be in place in early 2027
- If cleared, about 2,500 employees and 1.2 million tonnes of German graphic paper output would move into the new company
- European graphic paper consumption fell from 40 million tonnes in 2008 to 13 million tonnes in 2025, with 30 per cent overcapacity and 8 million tonnes forecast for 2030
- Gunnar Eberhardt of UPM is designated chief executive and Stephen Blyth of Sappi chief financial officer; bank financing is secured