European Commission expected to veto EUR 1.42bn UPM-Sappi graphic paper venture

UPM and Sappi's proposed EUR 1.42bn (USD 1.62bn) joint venture to combine their communication paper businesses faces a likely European Commission veto, Reuters reported citing sources, after the companies failed to offer concessions or convince regulators at a closed hearing. The Commission must decide by 11 November 2026; it flagged concerns in August that the deal would reduce competition and raise prices in graphic paper used for magazines and books.

Why this mattersA veto would remove the planned consolidation of Europe's shrinking graphic paper capacity, leaving both producers to manage overcapacity independently.

• The proposed joint venture would combine UPM and Sappi's communication paper businesses at an enterprise value of EUR 1.42bn (USD 1.62bn).
• The European Commission must rule on the deal by 11 November 2026, according to Reuters sources.
• UPM and Sappi have not offered concessions to address the Commission's competition concerns, Reuters reported.
• Difficulty finding a buyer for potential divestment assets has complicated efforts to resolve the antitrust issues, per the sources.
• The Commission issued a statement of objections in August 2026, citing risk of reduced competition and higher prices in graphic paper, including for magazines and books.
• UPM and Sappi signed the deal agreement and named a management team for the planned venture in May 2026, both subject to regulatory approval.

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