Reynolds Consumer Products, Inc. acquisition of Novelis Foil Products North America Division (NFP) will not lessen or prevent competition substantially, the Competition Bureau concluded recently, even though NFP's "Alcan" brand competes with Reynolds aluminum foil, and is the leading brand in Canada.
The Bureau found that:
- Aluminum foil is not substitutable for other kinds of wrap, because consumers use aluminum foil where plastic wrap and waxed paper cannot be used, such as in the oven or on the barbecue.
- Reynolds presence in Canada has not had a noticeable impact on the price of NFP's Alcan brand foil.
- Both companies distribute semi-rigid aluminum food containers. The remaining competitors in this market and low barriers to expansion make a substantial lessening or prevention of competition unlikely.
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