8 May 2006

LPB merger approved

The European Commission has approved the acquisition of liquid packaging board manufacturer AB Cartonboard by Korsn’s, even though the merger would bring together two of the three main producers in an already highly concentrated industry. Revisiting the scene of its landmark Enso/Stora decision, the Commission concluded that the merged firm would continue to face effective constraint from powerful and sophisticated buyers, as well as the incentive and ability of rivals to switch capacity from less profitable uses, and the likelihood of increased competition from outside Europe. RBB advised AD Cartonboard working with lawyers Vinge.

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