Helsinki – October 05, 2026 -- UPM-Kymmene Corporation and Sappi have received a Letter of Facts from the European Commission restating serious concerns about their proposed graphic paper Joint Venture, the companies disclosed as inside information on October 5, 2026.

Commission maintains objections despite ongoing talks

UPM and Sappi are analyzing the Letter of Facts and preparing a formal response. UPM said it disagrees with the Commission's preliminary assessment and will continue engaging with the review process, while planning to submit remedy proposals that fall short of divestments, citing the transaction's underlying rationale.

European graphic paper demand has halved in two decades

Digitalization has cut European graphic paper demand by more than 50% over the past 20 years, with further declines projected, according to UPM. The company argues the Joint Venture would allow a more orderly reduction of industry capacity while preserving reliable customer supply and generating efficiencies, rather than triggering disorderly closures that could leave buyers dependent on imports in the short term.

Draft EU merger guidelines signal shift toward resilience factors

The review is unfolding as the European Commission updates its merger control approach, reflected in draft revised Merger Guidelines published April 30, 2026. UPM contends this framework calls for weighing resilience, innovation and investment alongside traditional competition safeguards, particularly in structurally declining markets.

Transaction has already cleared most major jurisdictions

UPM and Sappi announced the planned Joint Venture in 2025 and signed a definitive agreement in May 2026. Merger control approvals have already been secured in China, South Africa and the United States. The European Commission's final decision is expected by year-end 2026 or shortly thereafter, with the Joint Venture becoming operational upon closing.