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Mega-printers LSC Communications Inc. and Quad/Graphics Inc. have mutually agreed to terminate their $1.4 billion merger agreement. Quad will pay LSC a termination fee of $45 million. The all-stock transaction was previously announced on Oct. 31, 2018. On June 20, the U.S. Department of Justice announced that it had filed suit in the U.S. District Court for the Northern District of Illinois to block Quad’s proposed acquisition of LSC, a $3.8 billion Chicago-based printer.

“We disagree with the DOJ’s conclusion regarding our transaction, especially in the context of industry trends,” LSC CEO Thomas J. Quinlan III said in a statement. “However, we and Quad recognize the significant additional time and resources that would be required to challenge the DOJ’s complaint and have therefore decided mutually that it is in the best interests of our respective companies to terminate the merger agreement. The LSC board of directors and senior management are confident that LSC has strong capabilities to innovate and further develop our leadership position in the industry. We are incredibly grateful to all of our employees for their work throughout the process. We are as dedicated as ever to serving our clients’ needs with the same level of service, innovation and industry-leading solutions that they have come to expect. Moving forward, we will continue to drive shareholder value.”