The European Commission has officially paused its in-depth investigation into the proposed €1.42 billion ($1.65 billion) paper joint venture between Finland’s UPM-Kymmene and South Africa’s Sappi. Regulators decided to stop the clock on the probe after the two companies failed to deliver critical information required for a thorough competitive assessment within the prescribed deadline.
This formal suspension took effect on May 26, halting an aggressive Phase II review. Under EU antitrust protocols, the regulatory timeline is frozen whenever merging parties delay providing essential data, ensuring that enforcers have the complete picture before issuing a final verdict. The investigation will remain on hold until UPM and Sappi submit the missing data, at which point a new, extended deadline will be calculated to replace the original decision date of October 26.(Reuters)
At the heart of the standoff is the European Commission’s fear that the consolidation could severely damage market competition across Europe. Regulatory officials previously warned that combining these two industry giants could lead to higher prices and reduced options for buyers. Both UPM and Sappi hold massive market shares as primary suppliers of coated mechanical paper and wood-free coated paper, making the deal a high-stakes focus for the bloc’s competition enforcers.
