The Department of Justice filed a civil antitrust lawsuit
June 20 seeking to block Wisconsin-based Quad/Graphics proposed acquisition of
Chicago-based LSC Communications.
DOJ filed the suit “to preserve competition in
the markets for magazine, catalog, and book printing services in the United States
The department filed its suit in the U.S.
District Court for the Northern District of Illinois.
The suit alleges that the transaction would
combine the only two significant providers of magazine, catalog, and book
printing services, denying publishers and retailers throughout the country the
benefits of competition that has spurred lower prices, improved quality and
greater printing output.
The all-stock acquisition was announced on
Oct. 31, 2018, and was approved by shareholders of both companies in February.
Quad said it intends to work together with LSC
to contest the DOJ’s allegations.
“The companies (Quad and LSC) believe that the
DOJ has reached the wrong conclusion in its assessment of the transaction and
LSC will join Quad in vigorously defending the lawsuit in court,” said a
statement from LSC.
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