The ACCC has announced it intends to oppose the proposed acquisition of ITC Timber by Gunns (ASX:GNS).
The regulator has decided that the acquisition would substantially lower competition in the market for hardwood pulpwood in north-eastern Tasmania, chairman Graeme Samuel said.
“[ACCC] inquiries indicated that [regional] suppliers would face lower prices for their timber if the proposed acquisition were allowed to proceed,” he said.
Specifically, the acquisition would give ITC control of its 50% stake in the SmartFibre wood chip venture.
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