Competition Bureau approves buyers of Domtar mills to resolve competition concerns in Canada’s pulp and paper industry

Dryden’s Domtar mill. Source: Domtar

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August 2, 2023 – GATINEAU, QC – The Competition Bureau has approved independent buyers of two of Domtar Corporation’s mills in Ontario:

  • Dryden Fibre Canada, ULC, an affiliate of First Quality Enterprises, LLC  as the buyer of Domtar’s pulp mill in Dryden; and
  • Atlas Holdings LLC as the buyer of Domtar’s pulp and paper mill in Thunder Bay.

Following a review of Domtar’s acquisition of Resolute Forest Products Inc, the Bureau registered an agreement in December 2022 requiring the sale of the mills. 

The Bureau review concluded that the merger of Domtar and Resolute would likely lessen competition substantially in the supply of northern bleached softwood kraft (NBSK) pulp in Eastern and Central Canada, and in the purchase of wood fibre from private lands in northwestern Ontario. The sale of the Dryden and Thunder Bay mills resolves competition concerns that would otherwise result from the merger.

The Bureau has issued a position statement describing its analysis of the merger of Domtar and Resolute as well as a summary of its findings.

Quick facts

  • First Quality Enterprises and its affiliates are a group of companies that manufactures, sells and distributes hygiene, paper and packaging products. 

  • Atlas Holdings owns and operates businesses across the automotive, building materials, business services and solutions, construction, energy, food and beverage, industrial services, metals, packaging, printing, pulp, paper and logistics industries.

  • Domtar, an affiliate of Paper Excellence, is one of Canada’s largest pulp and paper manufacturers.

  • For more information about the transaction between Domtar and Resolute, consult the consent agreement registered with the Competition Tribunal.

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

Source: Competition Bureau