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Verso and New Page face antitrust hurdles

The U.S. Department of Justice is likely to delay or even block the proposed merger of NewPage and Verso Paper, according to a news service that focuses on bankruptcy issues.
“Because the deal may increase the likelihood of both post-merger unilateral effects and coordinated capacity reduction and price increases, Department of Justice is almost certain to issue a second request.”

What will catch Department of Justices eye is that the merged company would control 58% of North American capacity to make coated paper.

Verso and NewPage may argue that supercalendered paper is part of the same market as coated paper, which would shrink the companies' market share somewhat because Verso no longer makes SC paper.
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