WASHINGTON — The Department of Justice announced today that it will require twoof the nation’s largest newsprint manufacturers – Abitibi-Consolidated Inc andBowater Inc.– to divest a newsprint mill in Arizona in order to proceed withtheir proposed $1.6 billion transaction. The Department said that the merger,as originally proposed would have substantially lessened competition in theproduction and sale of newsprint in North America.
The Department’s Antitrust Division filed a civil antitrust lawsuit today inU. S. District Court in Washington. D. C to block the transaction. At the sametime the Department filed a proposed consent decree that if approved by thecourt will resolve the lawsuit and the Department’s competitive concerns.
Under the proposed consent decree. Abitibi and Bowater agree to divestAbitibi’s newsprint mill in Snowflake. Arizona. The Snowflake mill is one ofthe largest and most profitable newsprint mills in North America. In addition,the merged company will be required to notify the Department before acquiring anadditional interest in any mill or machine that is currently jointly-owned byeither Abitibi or Bowater with any third party if the value of the acquisitionexceeds $2 million.
“Without a divestiture the combined company could have strategically closedcapacity and raised prices,” said Deborah A. Garza. Deputy Assistant AttorneyGeneral in the Department’s Antitrust Division. “This divestiture will ensurethat newsprint consumers continue to enjoy the benefits of competition.”
Abitibi is a Canadian corporation based in Montreal. Quebec. Canada. Abitibiowns 12 paper mills worldwide that produce newsprint including 11 in the UnitedStates and Canada. In 2006. Abitibi reported worldwide sales of approximately$4.8 billion including about $1.7 billion in North American newsprint sales.
Bowater is a Delaware corporation based in Greenville. S. C. Bowater owns ninemills that produce newsprint eight of which are in the United States andCanada. In 2006. Bowater reported total sales of approximately $3.5 billion,including approximately $1.1 billion in North American newsprint sales. The proposed settlement and the competitive impact statement will be publishedin the Federal Register as required by the Antitrust Procedures and PenaltiesAct. Any person may submit written comments concerning the proposed consentdecree within 60 days of its publication to Joseph Miller. Assistant Chief;Litigation I. Antitrust Division. U. S. Department of Justice. 1401 H Street,N. W.. Room 4000,Washington. D. C. 20530. At the conclusion of the 60-day commentperiod the court may enter the proposed final judgment upon finding that itserves the public interest.
Forex Groups - Tips on Trading
Related article:
http://papernotes.blogs.com/papernotes/2007/10/doj-requires-di.html
comments | Add comment | Report as Spam
|