According to UPM, the adoption of a Statement of Objections (SO) is a customary step during an in-depth merger investigation by the European Commission.
Aug. 26, 2026 - UPM announced that as part of the merger control approval process for the planned graphic paper Joint Venture between UPM and Sappi, the European Commission has issued a Statement of Objections.
In a press release, UPM said, "The adoption of a Statement of Objections (SO) is a customary step during an in-depth merger investigation by the European Commission. In the SO, the Commission has provided more details on its preliminary concerns. Together with Sappi, UPM is reviewing the SO carefully and will respond in due course.
"UPM is confident that it will be able to respond fully to the Commission's preliminary concerns, and remains convinced that the planned Joint Venture is a necessary step to secure reliable supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry, in the interest of customers. UPM will continue to engage constructively with the Commission during the next stages of the ongoing investigation," UPM concluded.
On May 28, UPM announced that it signed a definitive agreement to form a graphic paper Joint Venture with Sappi, and the parties have secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent on the transaction was signed on December 4, 2025.
The planned Joint Venture will include the entire UPM Communication Papers business and Sappi's graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries.
UPM will contribute their Communication Papers business assets which are located at the following UPM mills: Augsburg (Germany), Schongau (Germany), Nordland paper lines 1 and 4 (Germany), Rauma including UPM RaumaCell (Finland), Kymi — excluding pulp mill (Finland), Jämsänkoski paper line 6 (Finland), Caledonian (United Kingdom), and Blandin (USA).
Sappi will contribute the following assets: Gratkorn Mill (Austria); Ehingen Mill (Germany); Maastricht Mill (The Netherlands); and Kirkniemi Mill (Finland).
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. UPM operates globally and employs approximately 15,100 people worldwide, with annual sales of approximately EUR 9.7 billion.
SOURCE: UPM