UPM, Sappi get more time to ease EU antitrust concerns with remedies
- Brussels grants UPM and Sappi a 20-day extension to appease antitrust overlords.
- Companies betting big on a deal that creates Europe's dominant paper mogul.
- EU regulators fear a monopoly on the paper used for your magazines and books.
- Executives playing hardball, refusing to sell off assets despite looming veto.
Brief Summary
The European Commission is dragging its feet on a massive $1.6 billion joint venture between UPM-Kymmene and Sappi, extending the deadline for the companies to address antitrust fears until December 9. Brussels is terrified that combining these paper giants will choke off competition in the magazine and book publishing markets.
Why This Matters
If this deal goes through, you are looking at one company holding the keys to the paper supply chain for your favorite print publications. When competition vanishes, prices for paper products often climb, meaning the cost of the books and magazines you buy could hit your wallet harder. Keep an eye on this if you value print media, as a consolidated market usually results in fewer choices and higher costs for the final consumer.