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US: Fiberboard merger plans shattered

 |  October 2, 2014

Plans for a fiberboard merger in the US were scrapped Wednesday as the companies involved cited regulatory resistance to the deal.

Reports say Flakeboard America announced that plans to acquire three fiberboard plants from SierraPine have been abandoned after the US Department of Justice raised concerns that the deal would likely raise prices. The companies first announced plans in January; the merger was valued at about $107 million.

According to the DOJ, the deal would have handed Flakeboard, a subsidiary of Chile-based Arauca y Constitucion, a 58 percent market share in the fiberboard industry in certain parts of the West Coast.

Full content: Reuters

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