The Australian Competition and Consumer Commission will not intervene in the proposed acquisition of the remaining 50 per cent of Australian Newsprint Mills by Fletcher Challenge.
"Australian Newsprint Mills is currently owned jointly by News Limited and Fletcher Challenge and is the only manufacturer of newsprint and related grade paper in Australia", ACCC Chairman, Professor Allan Fels, said today. "Fletcher Challenge also has a number of mills overseas, including in New Zealand and Canada, which account for a substantial share of the newsprint and related grade paper imports to Australia each year.
"Nevertheless, Fletcher Challenge faces substantial import competition from paper manufacturers in Scandinavia, South Africa and Asia. Mills in Indonesia and Korea in particular are expected to significantly expand their capacity in the foreseeable future and are well placed to increase their share of the Australian market. This competition is likely to prevent Fletcher Challenge from increasing its prices or margins in Australia.
"Under these circumstances, the ACCC does not believe that the acquisition is likely to substantially lessen competition".
Further information Professor Allan Fels, Chairman, (06) 264 2808 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808
"Australian Newsprint Mills is currently owned jointly by News Limited and Fletcher Challenge and is the only manufacturer of newsprint and related grade paper in Australia", ACCC Chairman, Professor Allan Fels, said today. "Fletcher Challenge also has a number of mills overseas, including in New Zealand and Canada, which account for a substantial share of the newsprint and related grade paper imports to Australia each year.
"Nevertheless, Fletcher Challenge faces substantial import competition from paper manufacturers in Scandinavia, South Africa and Asia. Mills in Indonesia and Korea in particular are expected to significantly expand their capacity in the foreseeable future and are well placed to increase their share of the Australian market. This competition is likely to prevent Fletcher Challenge from increasing its prices or margins in Australia.
"Under these circumstances, the ACCC does not believe that the acquisition is likely to substantially lessen competition".
Further information Professor Allan Fels, Chairman, (06) 264 2808 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808