U.S. Wants To Stop $1.6 Billion Merger Of Newsprint Producers

WASHINGTON (CN) - The Department of Justice wants to stop the proposed $1.6 billion merger of the two largest newsprint producers in North America.

Theacting attorney general prompted a federal complaint to prevent Abitibi-Consolidated, a Canadian company, from merging with South Carolina-based Bowater Inc. to form AbitibiBowater. The government claims the merger "will create a newsprint producer three times larger than the next largest North American newsprint producer" with the ability and incentive to reduce competition and raise newsprint prices in the North American market.

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