Freshfields Advises UPM on €1.42bn Graphic Paper Joint Venture with Sappi

Global law firm Freshfields has advised UPM-Kymmene Corporation on the negotiation of a definitive agreement with Sappi Limited to form a non-listed, independent 50/50 joint venture for graphic paper. This joint venture will bring together UPM's Communication Papers business with Sappi's European graphic paper business.

The contributed businesses are valued at a combined enterprise value of €1.42bn, with UPM Communication Papers at €1.1bn and Sappi's European business at €320m. The joint venture seeks to secure supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry.

Completion of the transaction is subject to review by the European Commission and by authorities in other jurisdictions, including the US and China. Closing is expected by the end of 2026, subject to regulatory approvals and other closing conditions.

The Freshfields transaction and M&A team was led by Partner Patrick Cichy (Hamburg/Frankfurt) and Principal Associates Benjamin Jung , Simon Schulte-Lübberding and Valentin Müller (all Hamburg).

The merger control team was led by Partners Frank Montag , Tone Oeyen , Vanessa van Weelden and Principal Associate Aurélie Morreale (all Brussels).