EU to Rule on UPM, Sappi €1.42B Paper Deal by April 28

EU antitrust regulators will decide by April 28 whether to approve a €1.42 billion joint venture merging UPM's communication papers unit and Sappi's European graphic paper assets. EU to Decide on UPM, Sappi €1.42B Graphic Paper Joint Venture by April 28 Overview of the Proposed Joint Venture By Foo Yun Chee Regulatory Review Timeline BRUSSELS, March 23 (Reuters) - EU antitrust regulators will decide by April 28 whether to approve a proposed graphic paper joint venture between Finnish forestry firm UPM-Kymmene and South Africa-listed wood fibre group Sappi, according to a filing on the European Commission site. Details of the Joint Venture The 1.42-billion-euro ($1.65 billion) joint venture includes UPM's communication papers unit and Sappi's graphic paper business in Europe. Asset Contributions UPM will contribute assets in Germany, Finland, Britain and the United States to the joint venture while Sappi's contribution will come from assets in Austria, Germany, the Netherlands and Finland. Industry Context The deal comes amid falling demand in the industry due in part to digitalisation, structural overcapacity, high energy costs and rising paper imports from Asia and Latin America. Possible Outcomes of the Review The Commission, which acts as the EU competition enforcer, can clear the deal with or without demanding concessions after its preliminary review or it can open a full-scale investigation subsequently if it has serious concerns. Currency Exchange Rate ($1 = 0.8628 euros) Reporting Credits (Reporting by Foo Yun CheeEditing by Tomasz Janowski)