Special Report: Parsing the Implications of a NewPage-Verso Deal
"Still," Brown says, "those two forces don't hold back all the possible disturbing outcomes. Any consolidation reduces choice, product innovation, and service. Any consolidation tends to increase prices, ultimately."
"... There are market watchers who believe consolidation is the only solution for the troubled overall economics in the paper industry," she continues. "If the cure is making the commodity still more of a commodity and spreading sales and administrative costs over larger volume, then some fusion of Verso and NewPage could help a sagging industry. But I have trouble believing that the cyclical demand complexities of the paper market can be fixed simply by cutting costs. The problem is much larger, and it has to do with who buys paper and why in an age that is increasingly headed toward presenting words and images on screens instead of pages."