UPM, Sappi paper joint venture may lead to price hikes, EU regulators warn

EU antitrust regulators have opened an investigation into the proposed paper joint venture between UPM-Kymmene and Sappi, warning it may reduce competition and lead to price hikes. The review adds regulatory risk to the deal and could delay or alter its structure. The news is mildly negative for both companies and modestly relevant for the broader forestry and wood fibre market.

Analysis

EU antitrust regulators have opened an investigation into the proposed paper joint venture between UPM-Kymmene and Sappi, warning it may reduce competition and lead to price hikes. The review adds regulatory risk to the deal and could delay or alter its structure. The news is mildly negative for both companies and modestly relevant for the broader forestry and wood fibre market.