The European Commission has informed UPM-Kymmene Corporation (‘UPM’) and Sappi Limited (‘Sappi’) that their proposed joint venture may restrict competition in the communication paper markets, which are used for printed materials such as magazines and books. UPM and Sappi are the largest manufacturers of communication paper in the European Economic Area (EEA).
The joint venture seeks to combine UPM’s and Sappi’s communication paper businesses in Europe and the US, potentially leading to higher prices and fewer choices for customers. On 28 April 2026, the Commission opened an in-depth investigation to assess whether this merger would reduce competition, specifically in magazine paper and coated woodfree paper markets across the EEA, UK, and Switzerland.
The investigation analysed internal documents and gathered input from competitors and customers. The Commission is concerned that the joint venture could gain enough market power to raise prices and lower quality for coated mechanical and coated woodfree papers.
Currently, the Commission believes that any potential benefits from the joint venture may not outweigh the harm. A Statement of Objections has been issued, allowing UPM and Sappi to respond, review the case file, and request an oral hearing.
UPM, based in Finland, is a global materials solutions company that develops and markets paper products, pulp, electricity, sawn timber, wood panels, and biochemicals. Sappi, headquartered in South Africa, manufactures materials from renewable wood fibre resources, supplying both raw materials, such as pulp, and end-use products, such as communication and packaging paper.
