EU antitrust regulators have paused their review of the proposed €1.42 billion UPM-Sappi paper joint venture, pending additional information from the companies.

The European Commission stopped the review clock on May 26, 2026, meaning the previous decision deadline of October 26 will be replaced once the requested data is submitted.

Why the Review Was Paused

The Commission said merger investigations can be suspended when parties fail to provide important requested information within the required deadline.

The probe will resume after UPM and Sappi provide the missing data.

Competition Concerns

In April, EU regulators opened a Phase II investigation over concerns that the joint venture could reduce competition in Europe’s graphic paper market.

The main focus areas are:

• coated mechanical paper
• wood-free coated paper
• supply to printers and publishers
• potential price increases
• possible quality reduction

Why the Deal Matters

UPM and Sappi argue that the joint venture could improve efficiency, resilience and environmental performance in a declining graphic paper market.

However, regulators are assessing whether those benefits outweigh possible competition risks.

Industry Insight

The case highlights the pressure facing Europe’s graphic paper sector. Demand continues to decline, but regulators remain cautious about consolidation when fewer suppliers could mean higher prices for customers.

Final Thought

The suspension does not mean the deal has failed. It means the Commission needs more data before continuing its competition assessment. The next key step will be whether UPM and Sappi can provide the required information and address EU concerns.

Last Updated on 05/06/2026 by Jota Machinery