UPM and Sappi Form Graphic Paper Joint Venture
UPM and Sappi Sign Definitive Agreement for Graphic Paper Joint Venture
Finnish forestry group UPM-Kymmene and South Africa-listed wood fibre group Sappi have signed a definitive agreement to form a graphic paper joint venture, combining their European graphic paper businesses.
Regulatory Concerns and Concessions
EU antitrust regulators warned in April that the proposed joint venture could reduce competition and raise prices, opening an investigation. The companies are expected to offer concessions such as asset sales to address these concerns.
Financial Terms of the Deal
The 1.42 billion euro ($1.65 billion) deal includes UPM receiving €475 million in cash and €98 million in shareholder loans, while Sappi gets €90 million in cash and €10 million in shareholder loans. Both companies will hold a 50% stake in the joint venture.
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UPM will receive €475 million in cash and €98 million in shareholder loans from the joint venture, strengthening its balance sheet.
SAP SE O.N.
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