EU Suspends Probe into $1.65 Billion UPM-Sappi Merger awaiting Required Data
EU Antitrust Review of UPM-Sappi Joint Venture
By Foo Yun Chee
Regulators Pause Investigation Pending Information
BRUSSELS, June 4 (Reuters) - EU antitrust regulators have paused their review of a proposed €1.42 billion ($1.65 billion) paper joint venture between Finland's UPM-Kymmene and South African-listed Sappi, pending information from the companies.
The European Commission, the bloc's competition enforcer, stopped the clock on the probe on May 26.
Reason for Suspension
"The 'clock' in merger investigations can be suspended if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them (for its competition assessment) within a prescribed deadline," a Commission spokesperson said.
Next Steps and Timeline
The review will resume once the information is submitted, with a new deadline for a decision. The previous deadline was October 26.
Concerns Over Market Competition
In April, the Commission flagged concerns the deal could reduce competition and push up prices, noting both companies are major suppliers of coated mechanical paper (CM) and wood-free coated (WFC) paper in Europe.
Currency Exchange Rate
($1 = 0.8598 euros)
(Reporting by Foo Yun Chee. Editing by Mark Potter)
