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EU Halts Paper Giant Merger Review
4 Jun
Summary
- EU antitrust regulators paused the review of a paper joint venture.
- The €1.42 billion deal between UPM-Kymmene and Sappi was halted.
- Regulators cited a lack of timely information from the companies.
EU antitrust regulators have suspended their review of a significant €1.42 billion paper joint venture between UPM-Kymmene and Sappi. The European Commission, responsible for competition enforcement in the bloc, paused the investigation on May 26. This suspension occurred because the companies did not provide important information requested by the Commission in a timely manner.
The review process, which was previously set to conclude by October 26, will only resume once the necessary data is submitted by UPM-Kymmene and Sappi. Earlier in April, the Commission had expressed concerns that the deal could potentially reduce competition and lead to increased prices for coated mechanical paper and wood-free coated paper in Europe, as both companies are major suppliers in these markets.
