According to the Commission’s merger register, the deadline was suspended under Article 11(3) of the EU Merger Regulation effective May 26. The provision allows regulators to stop the review clock when requested information has not been submitted within the prescribed timeframe.
The suspension does not affect the ongoing Phase II investigation launched on April 28. The Commission is examining whether the proposed combination of UPM Communication Papers and Sappi’s European graphic paper business could reduce competition in the markets for coated mechanical (CM) paper and wood-free coated (WFC) paper.
Before the suspension, the Commission had been expected to issue a decision by October 26. A new deadline will be established once the requested information has been provided and the review timetable resumes.
UPM and Sappi signed a definitive agreement for the 50/50 joint venture in May. The companies have said the transaction would strengthen competitiveness and improve the long-term sustainability of their graphic paper operations amid declining demand and ongoing market restructuring.
For additional background on the transaction, see Paper Advance’s recent coverage: UPM and Sappi Sign Definitive JV Agreement.
