Corporate & Securities Law

DOJ Conditions Approval of the $1.75 billion Altivity and Graphic Packaging Merger on Divestitures

By Matthew S. Wild

March 4, 2008.  On July 10, 2007, Altivity Packaging LLC (”Altivity”) and Graphic Packaging International, Inc. (”Graphic”) announced their plans to merge in a transaction valued at $1.75 billion.  Altivity and Graphic are the first and fourth largest manufacturers (respectively) of coated recycled boxboard (”CRB”) in the United States and Canada.  Post-merger, the combined firm would control 42% of the CRB supply in North America.  CRB is used to make products such as cereal boxes.  The Antitrust Division also alleged high barriers to entry and expansion.  Accordingly, the Antitrust Division required the parties to divest 11% of their capacity to a new entrant.  The Antitrust Division was satisfied that such a divestiture would replace any loss in competition resulting from the merger.  The DOJ Press Release and Competitive Impact Statement are attached.DOJ Press Release (Altivity); Competitive Impact Statement (Altivity)This has been a very active day for the Antitrust Division.  Earlier in the day, the Antitrust Division challenged the Cookson/Foseco transaction.  

Full post as published by Antitrust Commentary on March 10, 2008 (boomark / email).