Competition Bureau Files for Consent Order in the Divestiture of Abitibi-Consolidated Paper Mill

OTTAWA, December 18, 2001 — The Competition Bureau filed an application for a Consent Order today with the Competition Tribunal requiring the sale of Abitibi-Consolidated Inc.'s Port-Alfred mill in Ville-de-La-Baie, Québec. The purpose of the Consent Order is to formalize an undertaking that Abitibi-Consolidated Inc. provided to the Bureau, as announced in February 2001, and to transfer responsibility for the divestiture of the Port-Alfred mill to an agent.

"Putting the mill in the hands of a competitive purchaser, who will keep the mill in operation over the long term, will benefit competition," said Robert Lancop, Deputy Commissioner of Competition, "The local economy stands to benefit from the outcome of this divestiture process. It will also create an alternative for the wood chip suppliers along the north shore of the St-Lawrence."

The agent will be required to sell the Port-Alfred mill as a going concern for the purpose of keeping newsprint capacity in the market thereby protecting competition in Eastern Canada.

As a result of competition concerns identified during the Bureau's review of Abitibi-Consolidated's acquisition of Donohue, Abitibi-Consolidated provided an undertaking to divest its Port-Alfred newsprint mill, along with all the assets necessary for the continued and effective operation of the mill. The mill has an annual newsprint production capacity of approximately 400,000 metric tonnes.

The Competition Bureau is an independent law enforcement agency which ensures that all Canadians enjoy the benefits of a competitive economy.

For general public enquiries, please contact:
Competition Bureau's Information Center
1-800-348-5358

For media enquiries, please contact:
Tim Weil
Senior Communications Advisor
Communications Branch
819-953-9271 or 613-296-2189 (cell.)