Sappi says EU concerns remain over proposed UPM graphic-paper joint venture

Sappi said on October 5, 2026 that the European Commission had issued a Letter of Facts expressing continuing concerns in its Phase II review of Sappi’s proposed graphic-paper joint venture with UPM. The companies were preparing a response and intended to propose remedies.

The update does not mean the Commission has reached a final decision. Sappi said no final determination had been made and that the proposed joint venture remained subject to regulatory approvals and other conditions.

What the companies propose

UPM said in its May 28, 2026 announcement that the planned joint venture would combine all of UPM Communication Papers with Sappi’s European graphic-paper business. Each company would own 50% of the venture.

The proposal concerns the combination of two existing graphic-paper businesses, rather than a venture already in operation. The ownership structure described by UPM remains a plan while the transaction is subject to approvals and other conditions.

Regulatory review remains open

The immediate development is the Commission’s statement of continuing concerns, not a decision to approve or reject the venture. Sappi’s stated next steps are to respond to the Letter of Facts and propose remedies as the Phase II review continues.

For the companies, the review matters because the proposed combination cannot be treated as completed while regulatory approvals and other conditions remain outstanding. Sappi’s update identifies a further response from the parties, but gives no final Commission determination.

What remains unresolved

The October update leaves both the regulatory outcome and the proposed venture’s completion unresolved. It establishes that the parties intend to address the Commission’s concerns through a response and proposed remedies; it does not establish whether those steps will secure approval.