BRUSSELS (From news reports) -- Finland's UPM-Kymmene and South Africa-listed Sappi are set to face an EU antitrust ​veto against their proposed €1.42 billion ($1.66 billion) paper ‌joint venture after the companies declined to offer concessions to address competition concerns, people familiar with the matter said.

The companies ​also failed to convince regulators of the ​merits of their deal at a closed-door hearing ⁠earlier this week even after they argued about ​the sustainability and resilient impact of the deal, one ​of the people said.

Difficulties finding a buyer for any potential asset sales mean it is not an option.

The European Commission, which ​acts as the EU competition enforcer did not ​immediately respond to a request for comment. UPM and Sappi ‌declined ⁠to comment.

The EU watchdog sent a charge sheet to the companies last month saying that the deal may reduce 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 US with Sappi's communication paper business ​in ⁠Europe and speciality paper business and other ancillary activities, would create the biggest player in Europe.