Sappi CEO argues merits of $1.64bn UPM deal to EU antitrust officials
The CE of South African papermaker Sappi on Tuesday argued the merits of its €1.42-billion ($1.64-billion) paper joint venture with Finland's UPM-Kymmene to EU antitrust officials, a month after the companies were warned about potential anti-competitive effects.
Steve Binnie was in Brussels for a day-long closed-door hearing attended by senior European Commission officials and lawyers for both companies.
He made his comments to journalists as he headed into the hearing, which will likely ramp up pressure on the companies to offer remedies such as asset sales to address competition concerns or risk a veto on the deal.
The Commission, which acts as the EU's competition enforcer, sent a charge sheet to the companies last month saying that the deal may restrict competition in the markets for different types of communication paper used for magazines and books.
The deal, which would combine UPM's communication paper business in Europe and the United States with Sappi's communication paper business in Europe and speciality paper business and other ancillary activities, would create the biggest player in Europe.
Regulators, which will decide on the deal by November 11, also warned the combined entity could increase prices.
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