The “European champion” concept is based on the idea that it would be beneficial to have European players capable of competing with American and Chinese companies. UPM/Sappi doesn’t fit this mold very well, as such competitors do not exist in graphic papers. One could argue this is the case in fine paper, but that represents a smaller part of the planned company.
Another aspect is that the European Commission’s new guidelines are not even in effect yet. In that sense, setting up the JV might be happening a bit too early. Of course, they could perhaps postpone the decision until the guidelines come into force, which might then provide some marginal benefit.
The problem here as well is that, at least in some draft, the European Champion concept refers to the capacity for investment and innovation, but this is an industry where investments are no longer being made, nor can much innovation really be expected.