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.

Read the Top 8

Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.

Email *

Submit