Louisiana-Pacific, Ainsworth Lumber face fight with regulators over tie-up


Louisiana-Pacific (LPX) took an afternoon dive when CEO Curtis Stevens said in today's earnings call that it may face a legal fight with U.S. and Canadian regulators over its planned $1.1B purchase of Ainsworth Lumber (ANSBF).

The companies are at odds with the U.S. Justice Department and Canada's antitrust regulator over required divestitures to complete the transaction, according to Stevens.

Analysts are saying the regulators are most concerned the companies would have too much pricing power in western Canada because of their large market share in the region; TD Securities estimates the combined entity would control ~51% of oriented strand board production capacity in that area.

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