Paper Maker Settles With Justice Department Over Acquisition

Verso Paper said on Wednesday that it would sell two paper mills to settle a government antitrust lawsuit over a $1.4 billion acquisition.

Nearly a year ago, Verso announced that it would acquire NewPage Holdings, which had emerged from bankruptcy in 2012, for $1.4 billion in cash and debt.

A NewPage paper mill that produces glossy paper used for catalogs and magazine.

In a lawsuit filed on Wednesday in the United States District Court for the District of Columbia, the Justice Department said that a combination of the two paper makers would eliminate competition in the supply of high-quality coated publication papers used for magazines, catalogs, brochures and the like in North America. Their combined  business for two types of coated papers accounts for more than $5 billion in sales.

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