Competition Bureau reaches agreement with Domtar to preserve competition in Canada’s pulp and paper industry

By Competition Bureau Canada
Government of Canada
December 29, 2022
Category: Business & Politics
Region: Canada, Canada East

The Competition Bureau has entered into a consent agreement with Domtar Corporation to address competition concerns with its acquisition of Resolute Forest Products Inc.  A Bureau review concluded that the proposed transaction would likely lessen competition substantially in the supply of northern bleached softwood kraft (NBSK) pulp in Eastern and Central Canada and in the purchase of wood fibre from private lands in northwestern Ontario.  The Bureau determined that Domtar and Resolute account for a significant portion of the supply of NBSK in Eastern and Central Canada. The proposed transaction would result in market shares well above the 35% threshold established in the Bureau’s Merger Enforcement Guidelines. …To resolve the Bureau’s concerns, Domtar Corporation 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.

Halifax Examiner (subscription publication), by Joan Baxter: Canada’s Competition Commissioner okays merger that will reduce competition in Canada’s pulp and paper sector

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