UPM will contribute assets in Germany, Finland, Britain and the United States to ​the joint venture while Sappi's contribution ​will come from assets in Austria, Germany, the ‌Netherlands ⁠and Finland.

The deal comes amid falling demand in the industry due in part to digitalisation, structural overcapacity, high energy ​costs and ​rising paper ⁠imports from Asia and Latin America.

The Commission, which acts as ​the EU competition enforcer, can ​clear ⁠the deal with or without demanding concessions after its preliminary review or it ⁠can ​open a full-scale investigation ​subsequently if it has serious concerns.