UPM, Sappi get more time to ease EU antitrust concerns with remedies

UPM, Sappi Get Additional 20 Days to Address EU Antitrust Remedy Concerns

EU Antitrust Review of UPM and Sappi Joint Venture

Extension Granted for Remedy Proposals

BRUSSELS, Oct 6 (Reuters) - Finland's UPM-Kymmene and South Africa-listed Sappi have been given an additional 20 days until December 9 to come up with remedies to address EU antitrust concerns about their €1.42 billion ($1.6 billion) paper joint venture, the European Commission said.

Companies' Response to Commission Concerns

Planned Remedies Without Divestments

The companies said on Monday that they planned to submit remedies but no divestments after the European Commission reiterated its concerns about the deal via a letter of facts. Last month, sources told Reuters that the companies were not planning to offer remedies or sell any assets because of the difficulties of finding a buyer, a move that could lead to a veto against the deal.

Commission's Statement on Deadline Extension

"The deadline for the Commission to take a decision has been extended by 20 working days following a request from the notifying party," a Commission spokesperson said in an email on Tuesday.

Details of the Proposed Joint Venture

Scope of the Deal

The deal to combine UPM's communication paper business in Europe and the US with Sappi’s communication paper business in Europe and speciality paper business and other ancillary activities would create the biggest player in Europe.

Potential Impact on Competition

The EU antitrust enforcer has warned that the deal may restrict competition in the markets for different types of communication paper used for magazines and books.

Exchange Rate Information

($1 = 0.8875 euros)

(Reporting by Foo Yun Chee; Editing by Susan Fenton)