DOJ Sets Conditions For Newsprint Merger

Law360, New York (October 23, 2007, 12:00 AM EDT) -- As a $1.6 billion merger hangs in the balance, the U.S. Department of Justice has demanded that Abitibi-Consolidated Inc. shutter a large Arizona newsprint mill before the Canadian manufacturer can unite with fellow newsprint giant Bowater Inc.

On Tuesday, the DOJ revealed that it had filed a proposed consent decree requiring the divestiture, contending that the merger in its current form would significantly harm competition in the newsprint market.

“Without a divestiture, the combined company could have strategically closed capacity and raised prices,” said Deborah A....
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