Competition issues with Canadian paper merger

The Canadian Competition Bureau (CCB) has approved Domtar’s acquisition of Resolute Forest Products, but has required some facilities to be divested.

The CCB has entered into a consent agreement with Paper Excellence-owned Domtar to address competition concerns it has with the proposed acquisition of Resolute. Specifically, a review concluded that the deal would “likely lessen competition substantially in the supply of NBSK (northern bleached softwood kraft) pulp in eastern and central Canada and in the purchase of wood fiber from private lands in north-western Ontario.”

To resolve the CCB’s concerns, Domtar has agreed, post-transaction, to sell its Dryden pulp mill and Thunder Bay pulp and paper mill to two independent purchasers approved by the commissioner of competition.

Once the acquisition of Resolute has been completed, most likely in the first half of this year, Domtar will then have to make “commercially reasonable efforts” to sell the two locations. If this is not achieved during the initial sale period (the duration of which is confidential), responsibility for the divestitures will be placed in the hands of a trustee appointed by the commissioner.

Paper Excellence confirmed the agreement to buy Resolute for around $2.7 billion last July, just a few months after it had completed its $3 billion acquisition of Domtar.

Clover receives sustainability recognition

Clover Imaging Group has announced that its remanufactured ink and laser printer cartridges have received GreenCircle certification for both Recycled Content and Closed Loop Product.

The ink and laser cartridges were certified respectively at 99 percent and 86 percent Recycled Content and Closed Loop Product. The US firm said it is the first printer cartridge manufacturer (OEM or aftermarket) to receive GreenCircle’s certifications in these areas.