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UPM, Sappi Secure EU Extension in €1.42 Billion Paper Deal Review

By  |  October 6, 2026
EU, bank regulation

UPM-Kymmene Oyj and Sappi have secured additional time from European Union regulators to address competition concerns surrounding their planned €1.42 billion ($1.6 billion) paper joint venture, extending a regulatory process that could reshape Europe’s communication-paper industry.

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    The European Commission added 20 working days to its review timetable at the companies’ request, pushing the deadline for a decision to Dec. 9, according to Reuters.

    The extension gives Finnish producer UPM and South Africa-listed Sappi more time to propose measures intended to resolve regulators’ concerns. The companies said Monday that they expect to offer remedies but do not plan to include asset sales in their proposal, Reuters reported.

    The Commission recently reiterated its objections through a formal communication outlining its concerns, according to Reuters. The news service had reported in September, citing people familiar with the matter, that UPM and Sappi were then reluctant to offer concessions or dispose of assets because finding an appropriate buyer could prove difficult. Such an approach risked leaving the transaction vulnerable to being blocked by EU regulators.

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    A European Commission spokesperson told Reuters that the decision deadline was lengthened by 20 working days following a request from the party that notified regulators of the transaction.

    Read more: EU Regulators Poised to Block UPM-Sappi Paper Venture

    The proposed venture would bring together UPM’s communication-paper operations in Europe and the US with Sappi’s European communication-paper business, specialty-paper activities and related operations. If completed, the combination would become Europe’s largest participant in the sector, according to Reuters.

    That scale is central to the Commission’s scrutiny. EU competition authorities have warned that the transaction could weaken competition across markets for several categories of communication paper, including products used to print magazines and books, Reuters reported.

    The companies’ decision to pursue remedies without divestitures sets up a key test of whether behavioral or other concessions can satisfy Brussels without requiring them to sell businesses or production assets. The additional review period gives regulators more time to assess those proposals before reaching a final decision.

    The transaction is valued at about €1.42 billion, equivalent to roughly $1.6 billion at the exchange rate cited by Reuters.

    Source: Reuters