Superior Plus Corp. abandoned plans to buy rival chemical
manufacturer Canexus Corporation after the US Federal Trade
Commission challenged the merger.
Both the FTC and the Canadian Competition Bureau concluded that
the merger would harm competition. The Bureau ruled that the merger
would be saved by efficiency gains and gave the parties the
go-ahead. In the US, where efficiencies are treated differently, theFTC
filed an administrative complaint challenging the merger.
Toronto-based Superior and Calgary-based Canexus produce
chemicals for the pulp and paper industry. The Bureau concluded
that their merger would substantially lessen competition for the
supply sodium chlorate and several other chemicals used principally
by the pulp and paper industry,but also by a variety of other
industries. Due to the minimal presence of foreign imports, the
merger would raise prices for customers of Superior and Canexus,
the Bureau found.
