The European Commission has granted regulatory clearance to a proposed operation by which Finnish paper manufacturer UPM-Kymmene Corporation will acquire Morgan Adhesives Company, a US-based company that makes adhesive labels for the manufacturing sector. The operation does not present any risk of creation of a dominant position in the European Union since US-based Avery Dennison will remain the market leader. UPM-Kymmene has entered into an agreement for the acquisition of Morgan Adhesives Company. Both UPM-Kymmene and Morgan Adhesives, through their respective subsidiaries Raflatac of Finland and MACtac of Belgium, are active in the supply of self-adhesive labels. The agreement was notified to the Commission on September 18 for regulatory clearance under the European Union's Merger Regulation. The transaction has also been notified with the US and Canadian competition authorities. The Commission's investigation showed that the limited overlaps between the activities of Raflatac and MACtac in the labelstock market would not give rise to any competition concerns. Post merger, Avery Dennison will remain the leading manufacturer of self-adhesive labels in the European Union although closely followed by UPM's Raflatac. The investigation also revealed that the transaction would not affect the ability of the several remaining competitors to restrain the competitive behaviour of these two large players. UPM-Kymmene is the holding company for the Finnish UPM-Kymmene Corporation, internationally active primarily in the paper industry (newsprint, magazine paper, fine paper), converting (self-adhesive labelstock, siliconised papers, packaging film) and wood products (sawn timber and plywood). Morgan Adhesives Company (USA) belongs to the Bemis Company Inc. (USA) European union press release