EU Regulators Probe UPM and Sappi Paper Joint Venture
The EU opened an investigation into a 1.42 billion euro venture between UPM and Sappi today. Regulators warn the deal could reduce competition and raise prices.
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UPM-KYMMENE OYJ and SAPPI LIMITED face an EU antitrust probe into their €1.42B ($1.7B) paper joint venture. The European Commission warned the deal may reduce production capacity and raise prices for coated mechanical and wood-free papers. Investors must weigh potential asset sales against the goal of consolidating a sector struggling with high energy costs.
