Update on proposed Sappi and UPM graphic papers joint venture

Sappi notes that the European Commission has issued a Letter of Facts stating that it continues to have concerns regarding the proposed European graphic papers joint venture between Sappi and UPM.

A Letter of Facts forms part of the European Commission's Phase II merger review process. Sappi and UPM continue to engage constructively with the Commission and are preparing a response. In parallel, the parties intend to submit proposals for certain remedies to address the issues raised by the Commission.

Sappi continues to believe that the proposed joint venture represents an appropriate response to the structural decline in European graphic paper markets. By combining complementary assets and capabilities, the transaction is expected to create a more efficient and sustainable manufacturing platform, enable the orderly management of capacity in line with market demand, and help maintain a reliable supply of graphic papers to customers across Europe.

The Phase II review process remains ongoing, and no final determination has been made by the European Commission. The parties remain committed to engaging openly and constructively with the Commission as it continues its assessment of the proposed transaction.

As previously announced, the proposed joint venture remains subject to the receipt of the necessary regulatory approvals, including merger control clearance from the European Commission, as well as the fulfilment of other conditions precedent.  The parties expect the European Commission final decision by the end of 2026 or shortly thereafter.

Sappi will provide further updates as appropriate.

Further information on the proposed Joint Venture can be found on: