Gunns was forced to revise its original acquisition proposal after the ACCC objected to the inclusion of ITC’s 50% stake in the SmartFibre wood chip joint venture, citing concerns over competition in the hardwood pulp market in Tasmania’s north-east. SmartFibre also operates out of the Bell Bay region, the site of Gunns’ controversial pulp mill proposal.

The ACCC withdrew its opposition following Gunns’ decision to exclude the SmartFibre stake from the deal.

“The [ITC] acquisition represents a logical combination of two complementary businesses and is expected to deliver significant, realisable synergies by the end of year one,” said Gunns company secretary Wayne Chapman.

The deal, which was originally announced in August, will see Gunns acquire two manufacturing locations in Victoria and two in Tasmania.

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