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January 2, 2015

Feds OK Verso-NewPage merger

Verso Paper Corp. has cleared a major hurdle in its bid to buy larger competitor NewPage for $1.4 billion after reaching a settlement with federal antitrust regulators, thus creating implications for NewPage’s mill in Rumford and Verso’s shuttered mill in Bucksport.

The Bangor Daily News reported that NewPage will have to sell its mills in Rumford and Biron, Wis., as part of the settlement with the U.S. Department of Justice. The federal agency reportedly objected to the merger if the mills weren’t sold because the merged company otherwise would have controlled more than half of the North American paper market and over 70% of the adhesive label business. NewPage announced its plan to sell the mills to Canada-based Catalyst Paper Corp. earlier this year.

The Justice Department also said in the settlement that Verso had been planning to close its Bucksport mill “before it decided to merge with NewPage.” The BDN said that statement could make it more difficult for the Machinists’ union representing Verso workers in Bucksport to legally challenge Verso’ planned sale of the mill to a Canadian scrap metal company.

The Verso-NewPage settlement requires approval from the U.S. District Court of the District of Columbia before the merger can close, which is expected to happen this month. The merged company would be led by Verso corporate management.

Read more

Verso, NewPage merger back on track

Verso mill to close, lay off 570 workers

NewPage plans to sell its only Maine mill

Union sues to block Verso mill sale

Verso’s Jay mill’s value to be reduced by $223M

Verso completes $1.4B merger with NewPage

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