Following today’s announcement by Superior Plus Corp. that it would abandon plans to acquire Canexus Corporation, the Director of the Federal Trade Commission’s Bureau of Competition, Debbie Feinstein, said:
“The abandonment of this transaction means that Superior and Canexus will continue to compete as independent companies, and that is a very good thing for consumers. Although many of us may never have heard of sodium chlorate, it is used in a range of consumer products including paper manufacturing, and the combination of Superior and Canexus likely would have led to higher prices.”
On Monday the Commission voted 3-0 to file an administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal court to stop the proposed $982 million acquisition.
The FTC charged that the proposed merger would likely reduce competition in the North American market for sodium chlorate – a commodity chemical used to bleach wood pulp that is then processed into paper, tissue, diaper liners, and other products.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.
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