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.
“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.
The review will resume once the information is submitted, with a new deadline for a decision. The previous deadline was October 26.
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.
Source: Reuters.com