The Competition Authority is to investigate the planned acquisition by Coillte of another company involved in the manufacture of wood products in the State.
In a statement, the authority said it had received notification of Coillte Teoranta's proposed acquisition of Weyerhaeuser Europe Limited on August 22nd last.
Under mergers and acquisitions law, the authority must decide whether the result of that deal will "substantially lessen competition" in markets for goods or services in the State.
"After a preliminary investigation (Phase 1), the Competition Authority has been unable to conclude without further investigation that the transaction will not substantially lessen competition," the statement said.
A final determination on the transaction must be made by December 22nd 2006, but the Competition Authority said it may conclude its investigation in advance of that date.
"The investigation of the proposed acquisition will examine the effect on competition across a range of vertically related markets in the sector."
The authority will now accept written or oral submissions by post or email on the planned Coillte acquisition until October 12th.