Sappi CEO defends UPM paper joint venture to EU antitrust officials
Sappi chief executive Steve Binnie attended a closed-door EU hearing on 15 September 2026 to defend the EUR 1.42bn (USD 1.64bn) communication paper joint venture with UPM-Kymmene. The European Commission warned the companies last month that the deal may restrict competition in communication paper markets and could raise prices. Brussels must decide on the deal, which would create Europe's largest communication paper player, by 11 November 2026.
Why this mattersA Commission veto or forced remedies would reshape European communication paper supply and set a precedent for consolidation among fibre-based paper producers.
- Deal value is EUR 1.42 billion ($1.64 billion)
- Joint venture combines UPM's European and US communication paper business with Sappi's European communication paper and speciality paper business
- European Commission sent a charge sheet last month citing potential competition restriction in magazine and book paper markets
- Closed-door hearing held in Brussels on 15 September 2026 attended by senior Commission officials and company lawyers
- Regulators warned the combined entity could increase prices
- Commission decision deadline is 11 November 2026