GUNNS Limited’s plans to buy ITC Hardwood in a $100 million deal have been scuttled. The Australian Competition and Consumer Commission said today that it intended to oppose the acquisition because it would substantially lessen competition for pulpwood in the North-East of Tasmania.ACCC chairman Grame Samuel said farmers and plantation owners would have faced lower prices if the acquisition had been allowed to proceed. … “The proposed acquisition would reduce the number of significant independent acquirers of hardwood pulpwood in the region from three to two with the remaining competitor to the merged firm unlikely to provide an effective competitive constraint,” he said.
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But they plan to keep trying: Gunns continues push for more assets
What Gunns says: HERE