IP Deal for Rival Champion Clears Hurdle

International Paper’s proposed $7.3-billion purchase of rival Champion International has won approval from Justice Department antitrust regulators, IP said. Antitrust clearance also is expected in Canada and Brazil, where authorities still are reviewing the deal, said John Dillon, International Paper’s chief executive. IP said it expects to complete the acquisition next month. Purchase, N.Y.-based International Paper is the world’s largest paper maker with $24.6 billion in revenue. It employs 99,000 people. Stamford, Conn.-based Champion has $5.3 billion in revenue and 18,000 employees. In addition to paying $7.3 billion in cash and stock for Champion, International Paper agreed to assume $2.3 billion of Champion’s debt. International Paper closed off 6 cents at $39, while shares in Champion, which has risen 44% since the deal was announced, closed up 81 cents at $74.06, both on the Big Board. The acquisition is expected to be completed next month.