Paper Excellence’s acquisition of Domtar approved by Canadian cartel office under conditions

Photo: Domtar

The Canadian Competition Bureau has approved the takeover of pulp and paper manufacturer Domtar by Paper Excellence subject to conditions.

Despite competition concerns, an agreement was reached to allow the merger to proceed, Euwid reports. A prior review of the proposed transaction indicated that an unconditional merger would significantly reduce competition, meaning that Paper Excellence would have gained a monopoly position in a large part of southern British Columbia, according to the Bureau.

To address the Bureau's concerns, Paper Excellence has agreed to sell Domtar's pulp mill in Kamloops, British Columbia, following its acquisition.