Louisiana-Pacific Corp. Abandons Bid for Rival, Ainsworth Lumber Co. Ltd.

Amid concerns expressed by the Department of Justice about Louisiana-Pacific Corp.'s (LP) proposed acquisition of Ainsworth Lumber Co. Ltd., the department announced May 14 that LP has abandoned the deal.

The agency told LP that the proposed concentration was likely to create anticompetitive effects in the market for a type of manufactured wood-based panel called oriented strand board (OSB). Specifically, the department anticipated substantially lessened competition for OSB sold to customers in the Pacific Northwest and Upper Midwest regions of the United States.

Renata B. Hesse, deputy assistant attorney general of the department’s Antitrust Division, remarked that the parties’ decision ...