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Canada: Regulator clears Canexus-Superior Plus deal as US tries to block

By  |  June 28, 2016

Canadian chemical company Canexus said Canada’s antitrust regulator had approved its proposed buyout by rival Superior Plus.

This comes a day after the US antitrust regulator filed a complaint to block the deal, saying the companies were two of the three manufacturers of a chemical needed to whiten wood pulp for paper production.

Alberta-based Canexus also said on Tuesday that it was in talks with Superior Plus to potentially extend the closure of the deal to allow the Toronto-based company to litigate the action by the US Federal Trade Commission.

Superior Plus bid to merge with rival Canexus Corp. faces a challenge from the US Federal Trade Commission on concern that the combination would reduce competition in North America for a compound used in making paper, tissue and diapers.

When the companies announced the $324 million deal in October last year, they said the transaction was expected to close on June 29.

Full Content: Reuters

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