The Australian Competition and Consumer Commission announced today it will not oppose the acquisition of Commonwealth Paper by Spicers.
"This decision follows an extensive ACCC inquiry into the likely effect on competition of the acquisition", ACCC Chairman, Professor Allan Fels, said today.
"In assessing whether or not the acquisition would be likely to substantially lessen competition, the ACCC sought the views of industry participants.
"In speaking to these participants about the proposed acquisition, the ACCC found that there was some concern that the acquisition may have a negative effect on competition. The concerns related to the cut size copy paper sector and the scholastic paper-based product sector, particularly in the context of the concentration of ownership in the fine paper industry and PaperlinX's 42 per cent shareholding in Spicers.
"Because of the concerns expressed by industry participants, the ACCC intends to conduct a review of the fine paper industry at a reasonable time after the completion of the acquisition, in order to determine the acquisition's effect on the competitive state of the market. Accordingly, the ACCC has informed Spicers that it reserves the right to re-open the matter if the review highlights relevant information which indicates that the acquisition has brought about a substantial lessening of competition in any market".