Markets Wired

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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