International Paper acquires Temple-Inland

The US Department of Justice approved the $4.5 billion acquisition of Temple-Inland Inc. by International Paper Co. subject to the divestiture of three mills. CRA economists advised International Paper and its counsel, WilmerHale, throughout the proceedings before the DOJ. CRA’s work in the matter addressed concerns about whether the merger would lessen competition in the production and sale of containerboard in North America. CRA carried out extensive modeling and econometric studies showing that the merged firm would not find it profitable to close capacity with the intent of raising the market price of containerboard. CRA’s studies included analyses based on recent methodologies proposed and implemented by DOJ staff to evaluate competitive effects in related industries.