Sappi Limited received a formal Statement of Objections from the European Commission regarding its proposed joint venture with UPM's graphic paper business. The Commission preliminarily finds that the transaction could restrict competition within the European graphic paper market.
Sappi and UPM are the two largest producers in this sector within the European Economic Area. The Commission launched its in-depth investigation in April 2026.
Regulators expressed concerns that the combined entity could gain significant market power. This shift potentially leads to increased prices and reduced choices for customers of coated mechanical and coated wood-free paper.
The notification is a procedural step and does not constitute a final decision. Sappi and UPM are currently reviewing the objections to provide a response. The Commission will issue its final decision by November 11, 2026.