WASHINGTON (Legal Newsline) — Debbie Feinstein, director
of the Federal Trade Commission’s (FTC) Bureau of Competition, recently
released a statement regarding Superior Plus Corp.’s decision to abandon its
plans to acquire Canexus Corporation.
“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,” Feinstein said. “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.”
The FTC had voted 3-0 to file an administrative complaint
and seek a restraining order against Superior’s proposed $982 million
acquisition of Canexus. The FTC believed the merger would be
anti-competitive, reducing competition in the North American market for sodium
chlorate, which is used to bleach wood pulp that is then processed into paper,
tissue, diaper liners and other products.
Federal allows the FTC to issue an administrative
complaint when it has “reason to believe” that laws are being violated. The FTC
acts on behalf of public interest.