European Commission prepares to block UPM-Sappi EUR 1.42bn printing paper joint venture
The European Commission is preparing to block the EUR 1.42bn (USD 1.63bn) joint venture between UPM and Sappi after the companies failed to offer remedies at closed-door hearings this week, according to people familiar with the matter. The venture would merge UPM's European and US printing-paper businesses with Sappi's European printing-paper and speciality-paper operations to form the largest player in European printing paper. 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.
- Deal value is EUR 1.42bn (USD 1.63bn).
- Closed-door hearings this week failed to resolve EU competition concerns, according to people familiar with the matter.
- The companies are not pursuing an asset-sale remedy because no buyer could be found.
- The European Commission has warned the deal could weaken competition and raise prices in printing paper used for magazines and books.
- The venture would combine UPM's European and US printing-paper businesses with Sappi's European printing-paper and speciality-paper operations.
- The Commission's final decision is due by 11 November 2026.