Domtar Acquisition Of Resolute Gains Competion Bureau Approval Richmond, British Columbia, Canada based Paper Excel- lence, through its wholly-owned subsidiary Domtar Corpo- ration, and Resolute Forest Products announced that the Canadian Commissioner of Competition has entered into a consent agreement regarding their business combination. Once finalized, Domtar will acquire all of the outstand- ing shares of Resolute stock for $20.50 per share and one contingent value right tied to potential duty deposit refunds of up to $500 million. The Competition Bureau concluded that the transaction would likely lessen compe- tition substantially in the supply of northern bleached soft- wood kraft (NBSK) pulp in Eastern and Central Canada and in the purchase of wood fibre from private lands in north- western Ontario, according to a release. Domtar agreed, post-transaction, to sell its Dryden pulp mill and Thunder Bay pulp and paper mill to two independent purchasers approved by the Commissioner of Competition. Fort Mill, South Carolina based Domtar was acquired by Paper Ex- cellence in 2021 in a $3.0 billion all-cash transaction. “This acquisition strengthens the Paper Excellence Group’s core pulp and paper business and diversifies their product offering by adding tissue and wood product seg- ments,” said John D. Williams, President and Chief Exec- tive Officer of Domtar.
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www.boardconvertingnews.com
January 16, 2023
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