Ottawa, July 24, 2007 -- The Competition Bureau announced today that it will not challenge the merger between Abitibi-Consolidated Inc. and Bowater Incorporated.
"Following an extensive review, the Bureau has determined it will not contest this merger," said Melanie Aitken, Senior Deputy Commissioner of Competition. The Bureau found insufficient grounds to conclude that the merger was likely to result in a substantial lessening or prevention of competition in the relevant markets.
As part of its review, the Bureau looked at the competitive impact the merger would have on the markets for softwood lumber, market pulp, wood chips, roundwood/logs, newsprint, and uncoated groundwood paper. The review focussed particularly on the newsprint market in Eastern Canada.
Over the course of the review, the Bureau consulted with numerous market participants, including customers, competitors and industry experts. The Bureau identified potential competition issues, including in the sale of newsprint and certain grades of uncoated groundwood paper. However, the Bureau concluded that there are insufficient grounds to challenge the merger.
The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality services. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
For media enquiries, please contact:
Pamela Wong
Communications Advisor
External Relations and Public Affairs Branch
819-953-7734
For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
Toll free: 1-800-348-5358
TDD (hearing impaired): 1-800-642-3844
compbureau@cb-bc.gc.ca
Date Modified: 2007-07-24
