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Portfolio & StrategyRegulatory & Legal 18 Sep 2026

European Commission prepares to block UPM-Sappi EUR 1.42bn printing paper joint venture

EU regulators are preparing to block the EUR 1.42bn (USD 1.63bn) joint venture between UPM and Sappi after the companies declined to offer concessions on competition concerns, and did not convince officials of the deal's merits at a closed-door hearing in the week to 18 September 2026, according to people familiar with the matter. The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating the largest supplier in Europe. A final Commission decision is due by 11 November 2026.

Why this mattersA prohibition would keep European printing paper fragmented and mark a rare EU block of forestry-sector consolidation, hardening scrutiny of further tie-ups.

  • EU regulators are preparing to veto the EUR 1.42bn (USD 1.63bn) joint venture after the companies declined to offer remedies, according to people familiar with the matter.
  • Closed-door hearings in the week to 18 September 2026 did not persuade regulators of the merits of the deal.
  • An asset-sale remedy is not being pursued because of difficulties in finding a buyer.
  • The Commission sent a statement of objections in August 2026, saying the deal could reduce competition in communication paper used for magazines and books.
  • The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating Europe's largest supplier.
  • The Commission must decide by 11 November 2026.
  • Difficulty finding a buyer for potential divestment assets has complicated a remedy, the Commission said.
  • UPM and Sappi have not offered concessions to address the Commission's concerns, per Reuters.
  • As of 23 September 2026 the European Commission had not yet ruled on the Sappi-UPM joint venture.
UPM Sappi European Commission counterparty
Sources mezha.net Global Banking & Finance MarketScreener Deutschland DE pymnts.com uk.marketscreener.com Portal Packaging PT papnews.com euwid-paper.com
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-09-21 · Further coverage added: de.marketscreener.com
  • 2026-09-21 · Further coverage added: pymnts.com
  • 2026-09-21 · Edited before publication: Grounded and correctly ordered; EUR 1.42bn converts to USD 1.63bn at the given rate, which is fine even though the wire quoted USD 1.66bn. Key facts overstate the remedy point ("no buyer could be found" versus the source's "difficulties finding a buyer") and the lead bullet should be the prospective veto rather than the deal value; undated "this week" replaced.
  • 2026-09-21 · Edited before publication: Summary implied the companies failed to offer remedies at the hearings; the sources say they declined concessions and, separately, failed to persuade regulators at a closed-door hearing. Also dated "this week" for publication. EUR 1.42bn to USD 1.63bn verified at the supplied ECB rate.
  • 2026-09-22 · Further coverage added: uk.marketscreener.com
  • 2026-09-24 · Update: Further reporting confirms the Commission is set to block the UPM-Sappi paper venture after the parties again failed to offer remedies at the closed-door hearing.
  • 2026-09-25 · Update: Reuters reports UPM and Sappi still have not offered concessions to EU regulators and failed to sway officials at a further closed-door hearing, with the Commission's ruling due by 11 November 2026 unchanged.
  • 2026-09-26 · Update: Sappi and UPM continue to await an EU ruling on their graphic paper joint venture, with competition concerns still unresolved.