Louisiana-Pacific's decision to halt acquisition is victory for Northwest consumers, says Justice Department

Staff writerMay 14, 2014 

The Justice Department says its objection to Louisiana-Pacific Corp.'s acquisition of Ainsworth Lumber Co. has paid dividends for residents of the Pacific Northwest and the Upper Midwest.

Louisiana-Pacific announced this week it is dropping plans for acquiring Ainsworth.

The Justice Department says it objected to the combination of the two companies because the acquisition would give Louisiana-Pacific a dominant share of the oriented strand board market in the Northwest and the Upper Midwest.

Had the acquisition moved forward, said the Justice Department, L-P would have controlled 63 percent of the oriented strand board market in the Northwest and 55 percent in the Upper Midwest.

With a market share so large in those two regions, said the department. L-P would have been able to raise prices almost at will for OSB, a major product used in home building.

"The companies' decision to abandon the transaction, which would likely have resulted in less competition and higher OSB prices, is a win for customers in the Pacific Northwest and the Upper Midwest," said Renata Hesse, deputy assistant attorney general for the Justice Department's Antitrust Division.

Louisiana-Pacific is a Delaware corporation with headquarters in Nashville, Tennessee. Last year L-P had net sales of $2.1 billion. Of that, $1.1 billion in sales came from the company's OSB business.  

Ainsworth, based in Vancouver, British Columbia. had sales of $488 million, all of which was generated by the OSB business, said the Justice Department.  

 

  

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