EU Watchdog To Probe UPM's $1.2B Paper Cos. Buy

Law360, New York (March 4, 2011, 3:11 PM EST) -- The European Union's antitrust watchdog said Friday it had launched a probe into Finnish forest products giant UPM-Kymmene Corp.'s planned €900 million ($1.2 billion) purchase of paper makers Myllykoski Corp. and Rhein Papier GmbH over possible competition concerns.

The European Commission said it decided to open an in-depth investigation of the deal after its initial market investigation indicated the new company's behavior might not be sufficiently constrained by competitors in the magazine paper market.

A one-month review of the deal found that UPM's proposed purchase would...
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