Acquisition of Catalyst Paper by Paper Excellence Receives Competition Clearance

SEATTLE (Scrap Monster): Paper Excellence Canada Holdings Corporation has announced a significant step forward in its acquisition of assets of Catalyst Paper Corporation.

The clearance was granted by the Canadian Competition Bureau in the form of a no-action letter with respect to the company’s previously declared agreement to acquire all of the assets of Catalyst including its headquarters in Richmond, distribution centre in Surrey and mills in Crofton, Port Alberni and Powell River.

The no-action letter, issued after thorough review of the transaction, confirms that the Bureau will not challenge it before the Competition Tribunal. It stated that the proposed transaction is unlikely to lead to substantial lessening or prevention of competition in wood fibre procurement in coastal B.C. region. Meantime, the Bureau has all the rights to submit new application challenging the transaction within a year from the date of completion of the transaction.

Brian Baarda, CEO, Paper Excellence said that the acquisition clearly demonstrates the company’s continuing deep commitment to the British Columbia province. The completion of the transaction would position Paper Excellence as a key player within Canada’s forestry industry. Further, it will benefit all stakeholders involved, Baarda noted.

Paper Excellence, as part of its growth plan, has been on the lookout for opportunities to grow its platform in B.C., Canada and the entire North American region. It promised further investment to expand markets in order to take advantage of the increased demand.

Paper Excellence and Catalyst Paper can now move forward with preparations to complete the transaction, subject to remaining customary closing conditions.