Johannesburg, South Africa, 03 November 2008 -- /PRNewswire/ -- On 29 September 2008, Sappi (NYSE:SPP), the world's leading producer of coated fine paper, announced the proposed acquisition of M-real's Graphic Paper business for EUR 750 million. The acquisition is subject to approvals from Sappi shareholders at an Extraordinary General Meeting and the competition authorities, as well as the implementation of Sappi's planned rights offering.

The EU competition authorities on 31 October 2008, approved the transaction. The Sappi Extraordinary General Meeting will be held on 03 November 2008 to consider the transaction.

"We are delighted that the European Competition Commission has given its approval for this transaction," said Ralph Boettger, Sappi chief executive officer. "It is a strong stamp of approval for our acquisition and paves the way for us to drive long awaited consolidation and transformation of the European coated fine paper sector, while creating significant value for Sappi shareholders."