UPM and Sappi's proposed joint venture combining their communication paper businesses, valued at EUR 1.42bn (USD 1.62bn), faces a likely European Commission prohibition, Reuters reported citing people familiar with the matter, after the companies offered no concessions and did not persuade regulators at a closed hearing. The Commission must decide by 11 November 2026; in August 2026 it issued a statement of objections saying the deal could reduce competition and raise prices in graphic paper used for magazines and books. Both companies declined to comment to Reuters.
Why this mattersA veto would remove the planned consolidation of Europe's shrinking graphic paper capacity, leaving both producers to manage overcapacity independently.
- The proposed joint venture would combine UPM and Sappi's communication paper businesses at an enterprise value of EUR 1.42bn (USD 1.62bn).
- The European Commission must rule on the deal by 11 November 2026, according to Reuters sources.
- UPM and Sappi have not offered concessions and did not persuade regulators at a closed hearing, Reuters reported.
- Difficulty finding a buyer for potential divestment assets has complicated a remedy, per the sources.
- The Commission issued a statement of objections in August 2026, citing risk of reduced competition and higher prices in graphic paper, including for magazines and books.
- The partners signed the agreement in May 2026, expect annual synergies of about EUR 100m and UPM has said it targets completion by the end of 2026.
EU regulators are preparing to block the EUR 1.42bn (USD 1.63bn) joint venture between UPM and Sappi after the companies declined to offer concessions on competition concerns, and did not convince officials of the deal's merits at a closed-door hearing in the week to 18 September 2026, according to people familiar with the matter. The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating the largest supplier in Europe. A final Commission decision is due by 11 November 2026.
Why this mattersA prohibition would keep European printing paper fragmented and mark a rare EU block of forestry-sector consolidation, hardening scrutiny of further tie-ups.
- EU regulators are preparing to veto the EUR 1.42bn (USD 1.63bn) joint venture after the companies declined to offer remedies, according to people familiar with the matter.
- Closed-door hearings in the week to 18 September 2026 did not persuade regulators of the merits of the deal.
- An asset-sale remedy is not being pursued because of difficulties in finding a buyer.
- The Commission sent a statement of objections in August 2026, saying the deal could reduce competition in communication paper used for magazines and books.
- The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating Europe's largest supplier.
- The Commission must decide by 11 November 2026.
- Difficulty finding a buyer for potential divestment assets has complicated a remedy, the Commission said.
- UPM and Sappi have not offered concessions to address the Commission's concerns, per Reuters.
- As of 23 September 2026 the European Commission had not yet ruled on the Sappi-UPM joint venture.
The Finnish Financial Supervisory Authority has approved a supplement to the demerger and listing prospectus for WISA Group Plc, the entity UPM-Kymmene is spinning off onto Nasdaq Helsinki. The supplement confirms Lasse von Hertzen, previously interim CFO, as permanent Chief Financial Officer of WISA. The demerger is planned to complete on 31 October 2026, with WISA shares expected to start trading on 2 November 2026.
Why this mattersThe spin-off creates a separately listed entity carved out of UPM, letting investors value the unit independently of the parent group.
- Finnish FSA approved the prospectus supplement on 18 September 2026
- Demerger of WISA from UPM-Kymmene planned to complete 31 October 2026
- WISA shares expected to begin trading on Nasdaq Helsinki on 2 November 2026 or shortly after
- Lasse von Hertzen appointed permanent CFO of WISA Group Plc, having served as interim CFO
- WISA's Group Leadership Team now comprises seven senior executives including CEO Tuija Suur-Hamari
- Appointees remain in current UPM roles until the demerger takes effect
- fact one
Futamura and Bio4life have developed a certified home and industrially compostable pressure-sensitive adhesive label for fresh produce, combining Futamura's NatureFlex cellulose film with Bio4life's BioTAK adhesive. The product is aimed at retailers and packers seeking to remove conventional plastic fruit stickers, which the companies say contaminate organic waste and anaerobic digestion streams. No commercial volumes or launch customers were disclosed.
Why this mattersA compostable fruit sticker closes a long-standing contamination gap in food waste and anaerobic digestion streams as retailers face rising compostability requirements.
- Futamura's NatureFlex cellulose film is combined with Bio4life's BioTAK adhesive technology in the new label
- The label is certified for both home and industrial composting
- It targets fresh produce such as apples, avocados, kiwis and citrus fruit, replacing fossil-based plastic stickers
- Conventional PSA labels are cited as a contamination risk in organic waste and anaerobic digestion streams when disposed with produce skins
- NatureFlex films are offered in clear, white or metallised variants and can be used at thinner grammages than other compostable alternatives
- PPWR implementation date for the affected packaging rules is 12 February 2028
- Companies say only about one harvest cycle remains for produce industry trials before compliance is due
- Companies frame the launch as leaving packers roughly one harvest cycle to trial the label before PPWR's 12 February 2028 deadline
- The EU Packaging and Packaging Waste Regulation's 12 February 2028 start date leaves the fresh produce sector one remaining harvest cycle to trial and test compliant labels.
- Companies say the produce industry has one remaining harvest cycle to trial compliant labelling before PPWR applies
- Futamura operates film production sites in the UK, US and Japan
- PPWR applies from 12 February 2028, leaving roughly one harvest cycle for converters to trial alternatives
Finland's forest management associations opened the Pino digital marketplace for mandate-based timber sales on 15 September, and neither Metsä Group nor Stora Enso intends to use it. Metsä Group has confirmed it will not register, arguing an independent marketplace must stop price and bid information from advantaging one participant; Stora Enso says it will keep bidding in power-of-attorney sales but has raised information technology questions. The associations arrange 15m-20m cubic metres of such sales a year, so bids risk being split across Pino, the rival Kuutio platform, buyers' own systems and email.
Why this mattersA fragmented timber-tendering landscape raises procurement costs and reduces price transparency for two of Europe's largest fibre producers.
- Pino, built by MHYP with farmers' organisation MTK, opened on 15 September 2026
- Finnish forest management associations arrange 15m-20m cubic metres of mandate-based timber sales a year
- Metsä Group has publicly confirmed it will not register for Pino, citing concerns over access to commercially sensitive bid data
- Stora Enso will keep participating in power-of-attorney sales but has raised information technology questions over Pino
- UPM had not reached a final decision and said it would continue using the rival Kuutio platform
- Metsä Group is a shareholder in Kuutio and says mandate-based deals can also be handled through Kuutio or by email
UPM Specialty Materials has launched UPM Asendo 80, a grease-resistant label face paper that applies the company's packaging-paper barrier technology to labels for the first time without using PFAS. The 80 gsm grade targets food-contact and grease-sensitive label applications such as olive oil packaging, following the EU's PPWR PFAS restriction on food-contact packaging, which took effect on 12 August 2026. The paper is FSC or PEFC certified and meets FDA and German BfR food-contact requirements.
Why this mattersPFAS-free validated face papers give label converters a route to compliant food-contact products as EU rules tighten and give paper an edge over film alternatives.
- UPM Asendo 80 is an 80 gsm label face paper extending UPM's barrier paper technology to labels for the first time
- The grade does not use PFAS chemistry and each production stage is tested by independent third-party laboratories
- EU PPWR restriction on PFAS in food-contact packaging became applicable across the EU on 12 August 2026
- Product meets FDA and German BfR food-contact requirements and is available FSC or PEFC certified
- Compatible with a range of adhesive types and suited to UV Flexo and UV-inkjet printing
- Target applications include olive oil packaging and other grease-sensitive food-contact labels
- UPM Asendo 80 has been filed to demonstrate compliance with EU PPWR requirements
Sappi chief executive Steve Binnie attended a closed-door EU hearing on 15 September 2026 to defend the EUR 1.42bn (USD 1.64bn) communication paper joint venture with UPM-Kymmene. The European Commission warned the companies last month that the deal may restrict competition in communication paper markets and could raise prices. Brussels must decide on the deal, which would create Europe's largest communication paper player, by 11 November 2026.
Why this mattersA Commission veto or forced remedies would reshape European communication paper supply and set a precedent for consolidation among fibre-based paper producers.
- Deal value is EUR 1.42 billion ($1.64 billion)
- Joint venture combines UPM's European and US communication paper business with Sappi's European communication paper and speciality paper business
- European Commission sent a charge sheet last month citing potential competition restriction in magazine and book paper markets
- Closed-door hearing held in Brussels on 15 September 2026 attended by senior Commission officials and company lawyers
- Regulators warned the combined entity could increase prices
- Commission decision deadline is 11 November 2026
UPM and Sappi have conditionally nominated four additional executives to the management team of their planned graphic paper joint venture, adding to the CEO and CFO named earlier in September 2026. The nominations remain conditional on regulatory approval and completion of the transaction, which is under EU Phase II merger review with final resolutions expected by end-2026.
Why this mattersAdvancing management appointments signals the two paper makers are preparing for closing despite an ongoing EU antitrust review of their graphic paper tie-up.
- UPM and Sappi conditionally nominated four executives to the joint venture management team on 14 September 2026.
- Gunnar Eberhardt and Stephen Blyth were nominated earlier in September 2026 as CEO and CFO respectively.
- The joint venture was announced in 2025 and definitive agreements signed in May 2026.
- EU merger review entered Phase II on 28 April 2026, with final regulatory resolutions expected by end-2026.
- Marco Eikelenboom, currently CEO of Sappi Europe, is nominated as Senior Vice President Sales and Marketing.
- Until closing, UPM and Sappi continue to operate their respective businesses independently.
Finnish company Innomost has developed Suberinno Suberin, a barrier material derived from birch bark suberin, aimed at replacing fossil-based coatings in fibre-based packaging. The material targets moisture, grease and oxygen barrier properties for food and non-food paper and board packs. Innomost currently produces the material at its Kokkola, Finland facility and plans to build an industrial-scale plant within two to three years.
Why this mattersA commercially scalable bio-based multi-barrier coating could let paper and board packaging displace plastic laminates while meeting PPWR recyclability requirements.
- Innomost sources birch bark from an existing side stream of the Nordic forest industry.
- The product is marketed as Suberinno Suberin.
- It can provide moisture, grease and oxygen barrier properties in a single material.
- Production currently takes place at Innomost's facility in Kokkola, Finland.
- Innomost plans to build an industrial plant and scale production within two to three years.
- University of Oulu is separately developing suberin coatings with UPM and Metsä Board.
Sappi and UPM have nominated Gunnar Eberhardt as CEO and Stephen Blyth as CFO of their planned graphic papers joint venture, subject to regulatory clearance. The move comes after the European Commission issued a statement of objections roughly three weeks earlier, citing concerns that the merger could raise prices and reduce quality in communication papers. Sappi shareholders had already approved the deal with a 98.5% majority, and management aims to complete the transaction by the end of 2026.
Why this mattersRegulatory pushback on the Sappi-UPM graphic papers combination signals scrutiny that could delay or reshape a deal meant to consolidate a shrinking market.
- Gunnar Eberhardt nominated CEO and Stephen Blyth CFO of the planned Sappi-UPM graphic papers joint venture on 9 September 2026, subject to regulatory approval
- European Commission issued a statement of objections about three weeks earlier, citing risks of higher prices and lower quality in communication papers
- Sappi shareholders approved the joint venture with a 98.5% majority
- Sappi management targets completion of the transaction by the end of 2026
- Sappi reported Q3 adjusted EBITDA of USD 53m, down 34% year on year, within its July guidance
- Sappi has removed USD 120m of costs, half of it fixed-cost reductions mainly at European sites
- EU merger review of the UPM-Sappi joint venture remains in Phase II, entered in April 2026, with a final Commission decision expected by the end of 2026
- Until the deal closes, UPM and Sappi continue to operate their respective graphic paper businesses independently
