The Canadian Competition Authority announces an agreement reached to preserve competition in the pulp and paper industry (Domtar/Resolute Forest Products)

Overview Canada’s Competition Bureau (‘Bureau’) [1] assists the Commissioner of Competition (‘Commissioner’) in the administration and enforcement of the Competition Act (‘Act’). [2] On 29 December 2022 it announced that an agreement was reached with the Commissioner and Domtar Corporation (‘Domtar’) [3] that will preserve competition in the Canadian pulp and paper industry by requiring the divestiture of two paper mills following Domtar’s acquisition of Resolute Forest Products Inc. (‘Resolute’). [4] Specifics Bureau assessment and concerns The Bureau’s examination of the proposed merger concluded that in all likelihood it would substantially lessen competition in the supply of northern bleached softwood kraft [5] (NBSK) pulp in Eastern and Central Canada and in the purchase of wood