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US: Regs may clear paper merger despite resulting 50% dominance

By  |  July 25, 2014

Authorities may approve of a proposed merger between two major print media paper companies despite the fact that the newly merged company would hold more than 50 percent of the industry.

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    Verso Paper is looking to acquire its rival NewPage in a $900 million deal. The companies compete in the industry for coated paper that makes magazines and catalogues. If approved, the transaction would hand a 54 percent of the market share to Verso.

    Its closest rival, South Africa-based Sappi, would own about 25 percent.

    The result would lead to a highly concentrated market, reports say. But experts believe the deal may be approved regardless thanks to overseas competition.

    Still, some experts doubt the deal will be cleared, especially due to a history of price-fixing that has plagued the market in recent years.

    Full content: Reuters

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