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Alcan Merger Reportedly in Trouble

The weight of antitrust opposition by European regulators is blamed for the collapse.
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Alcan Aluminium's

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three-way merger plan is reportedly collapsing under the weight of antitrust opposition by European regulators.

The Montreal-based aluminum giant is attempting to merge with France's

Pechiney

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and Switzerland's

Algroup

in a deal valued at $10.6 billion.

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Representatives of both Pechiney and Alcan told

Reuters

that the deal is not dead, but its prospects remain uncertain. The companies have until April 30 to submit a revised plan that will satisfy regulators.

According to a report in Wednesday's

Wall Street Journal

, the companies could announce as soon as Wednesday that they will not resubmit their merger plan to the

European Commission

.

The European Commission has already approved Algroup's plan to combine with Alcan.

Alcan closed Tuesday up 2 at 34 1/4.