Decree moves Graphic Packaging-Altivity merger forward

-- Converting Magazine, 3/11/2008

Graphic Packaging Corp. (www.graphicpkg.com) and Altivity Packaging LLC (www.altivity.com) reach an agreement March 5 with the US Department of Justice that will allow completion of their merger.

Graphic and Altivity have signed a consent decree whereby the combined company will divest two of Altivity's coated-recycled paperboard mills—one in Wabash, IN, and the other in Philadelphia.

The Dept. of Justice said that the merger, as originally proposed, would have substantially lessened competition in the production and sale of coated, recycled paperboard used to make folding cartons. Altivity is the largest producer of coated recycled boxboard (CRB) in North America and Graphic is the fourth largest. Both companies also are major integrated producers of folding cartons made from CRB. The merger, as originally proposed, would have produced a single firm with approximately 42% of the production and sale of CRB in North America.