Feds OK Verso-NewPage merger
Verso Paper Corp. has cleared a major hurdle in its bid to buy larger competitor NewPage for $1.4 billion after reaching a settlement with federal antitrust regulators, thus creating implications for NewPage’s mill in Rumford and Verso’s shuttered mill in Bucksport.
The Bangor Daily News reported that NewPage will have to sell its mills in Rumford and Biron, Wis., as part of the settlement with the U.S. Department of Justice. The federal agency reportedly objected to the merger if the mills weren’t sold because the merged company otherwise would have controlled more than half of the North American paper market and over 70% of the adhesive label business. NewPage announced its plan to sell the mills to Canada-based Catalyst Paper Corp. earlier this year.
The Justice Department also said in the settlement that Verso had been planning to close its Bucksport mill “before it decided to merge with NewPage.” The BDN said that statement could make it more difficult for the Machinists’ union representing Verso workers in Bucksport to legally challenge Verso’ planned sale of the mill to a Canadian scrap metal company.
The Verso-NewPage settlement requires approval from the U.S. District Court of the District of Columbia before the merger can close, which is expected to happen this month. The merged company would be led by Verso corporate management.
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