ACCC aims to fell Gunns' plan to acquire ITC Timber

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.