|By Marketwired .||
|May 14, 2014 03:09 PM EDT||
OTTAWA, ONTARIO -- (Marketwired) -- 05/14/14 -- Competition Bureau
The Competition Bureau announced today that, following a review by the Mergers Branch, Louisiana Pacific Corporation (LP) and Ainsworth Lumber Co. Ltd. (Ainsworth) have terminated their previously announced agreement in which LP would acquire Ainsworth. Both parties own oriented strand board (OSB) mills.
The Bureau's review concluded that, had LP's acquisition of Ainsworth proceeded as proposed, it would have likely resulted in a substantial lessening of competition for the supply of OSB. The parties ultimately decided to abandon the proposed transaction.
As the mills that would have been acquired serve purchasers in both Canada and the United States, the Bureau cooperated and worked very closely with the United States Department of Justice throughout its review of the proposed transaction. The Bureau's long standing relationship with the U.S. DOJ ensured an efficient and coordinated review of this matter, consistent with the agencies' agreement on Best Practices on Cooperation in Cross-Border Merger Investigations.
-- OSB products are used primarily in the construction and renovation of homes. -- LP manufactures engineered wood building materials, including OSB, structural framing products and exterior siding, for use in residential, industrial and light commercial construction. LP currently operates three mills in Western Canada: two in British Columbia and one in Manitoba. -- Ainsworth manufactures OSB, oriented strand lumber and specialty overlaid panels. Its OSB mills are located in British Columbia, Alberta and Ontario.
"Our review concluded that LP's acquisition of Ainsworth would have likely resulted in serious competition concerns for the supply of OSB; purchasers would have faced higher prices and less choice. This review is an excellent example of the strength of the Canada-U.S. partnership in competition law enforcement that is based on decades working together to promote competition."
John Pecman, Commissioner of Competition
Follow us on Twitter: @CompBureau
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
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