Loading prices...

Register/Sign in
ScrapMonster
Sell Your Junk CarGet an instant quote for your car on ScrapMonster.com
Rubber and Wood August 08, 2016 12:30:29 PM

International Paper announces conclusion of regulatory review on Weyerhaeuser acquisition

Carolina Curiel
ScrapMonster Author
International Paper Co. has announced that the US Department of Justice has concluded the regulatory review on the company’s proposed acquisition of Weyerhaeuser’s pulp business.

International Paper announces conclusion of regulatory review on Weyerhaeuser acquisition

SPOKANE (Scrap Monster): International Paper Co. has announced that the US Department of Justice has concluded the regulatory review on the company’s proposed acquisition of Weyerhaeuser’s pulp business. The Hart-Scott-Rodino (HRS) review of the deal was concluded without taking any action. The company further stated that the other non-U.S. jurisdictions are in process.

Earlier in May this year, International Paper had announced the $2.2 billion cash deal to purchase the pulp business. Weyerhaeuser Co. had announced strategic review of its pulp business during November last year. Following this the company had held negotiations with several interested parties regarding sale of the mills and had finally decided to strike a deal with the pulp and paper major International Paper Co.

The purchase deal includes five pulps mills located in Columbus, Miss., Flint River, Ga., New Bern, N.C., Port Wentworth, Ga., and Grande Prairie. These five pulp mills employ around 1,900 workers and have a combined production capacity of nearly 1.9 million metric tons. The deal also includes two converting facilities in Columbus, and Gdansk, Poland. However, the deal does not include Weyerhaeuser’s liquid packaging-board facility or newsprint and publishing papers joint venture.

The transaction is expected to be completed during the last quarter of 2016. The purchase of the assets will help International Paper to generate additional cash flows. It will also position International Paper Co. as the premium global supplier of fluff pulp, which is used in the manufacture of hygiene products such as tissue-paper and other personal-care items. The anticipated rise in demand for hygiene products presents bright prospects for fluff-pulp manufactured from softwood.

The HSR Act provides that parties must not complete big mergers and acquisitions until they have made a detailed filing with the U.S. Federal Trade Commission and Department of Justice and waited for those agencies to determine that the transaction will not adversely affect U.S. commerce under the antitrust laws. While parties can carry out due diligence and plan for post-merger integration, they may not take any steps to integrate operations, such as an acquiring party obtaining operational control of the acquired party.

In related news, the Memphis, Tenn.-based International Paper announced that it has borrowed $2.3 billion in bond markets. Out of the above sum of money, $500 million will be used to fund contributions to its pension plan. As of end-June this year, the company had reported pension benefit obligation of $4.2 billion. The company had contributed $250 million to the plan during the initial two quarters of the year and had paid $1.2 billion to employees during the second quarter.

About International Paper Co.

International Paper is a global leader in the paper and packaging industry with manufacturing operations in North America, Europe, Latin America, Asia and North Africa. Headquartered in Memphis, Tenn., the company employs approximately 65,000 people and is strategically located in more than 24 countries serving customers worldwide.

About Weyerhaeuser Co.

Weyerhaeuser is one of the world's largest private owners of timberlands. It owns or controls more than 6 million acres of timberlands, primarily in the U.S., and manages another 14 million acres under long-term licenses in Canada.

×

Quick Search

Advanced Search