Canadian chemical maker Superior Plus scraps deal to buy Canexus
(Reuters) - Canadian chemical maker Superior Plus Corp (SPB.TO: Quote) said it scrapped the acquisition of rival Canexus Corp CUS.TO as they could not agree on terms, two days after the C$324 million ($251 million) deal was approved by Canada's antitrust regulator.
The U.S. Federal Trade Commission (FTC) had opposed the merger on Monday, saying the companies were two of the three manufacturers of a chemical needed to whiten wood pulp for paper production.
"The abandonment of this transaction means that Superior and Canexus will continue to compete as independent companies, and that is a very good thing for consumers," Debbie Feinstein, the director of the FTC's Bureau of Competition, said on Thursday.
The FTC had said that the merger would lead to higher prices for sodium chlorate - a chemical used to bleach wood pulp that is then processed into paper, tissue and other products.
The deal was announced last October.
Superior Plus shares were up 4 percent at C$10.70 in afternoon trading. Canexus shares were unchanged at C$1.28.
(Reporting by Vishaka George in Bengaluru; Editing by Saumyadeb Chakrabarty and Kirti Pandey)
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