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European Commission approves Korsnäs` acquisition of Assidomän Cartonboard without conditions (for Korsnäs)

The European Commission has approved without conditions the proposed acquisition by Korsnäs of Assidomän Cartonboard, Europe's second and third largest producers of Liquid Packaging Board (LPB). LPB is used in the production of cartons for the packaging of products such as milk and juice. CRA International provided economic advice to Korsnäs throughout the Commission's investigation. Issues raised by the acquisition included the constraining effects of countervailing buyer power and competition from LPB producers outside Europe on any attempts by the merged entity to increase prices either unilaterally or in a coordinated fashion with the remaining large producer in Europe, Stora Enso. The Commission also acknowledged that the acquisition would be likely to create synergies that would be at least partly passed on to consumers.

See Commission's press release

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