Domtar Corp. and Paper Excellence in Talks Over Acquisition Deal

SEATTLE (Scrap Monster): Domtar Corporation confirmed that it is in talks with Paper Excellence over a potential deal. The deal was initially reported by Bloomberg, who cited people familiar with the matter.

The company press release noted that the company has been made aware of press speculation related to discussions with Paper Excellence in connection with a possible business combination or acquisition. Its management has been in discussions with Paper Excellence about such transaction in a potential $3 billion deal. However, the discussions may or may not result in an agreement, it said. Furthermore, the press release made it clear that the company does not intend to make any further comment on the matter until and unless there is a transaction to announce.

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As per media reports, the two companies are said to be working with advisers on a potential transaction that would take U.S.-listed Domtar private. The deal could value Domtar’s share at mid-$50s. The final decision has not been arrived yet. The company representative for Paper Excellence declined to comment.

Recently, Domtar had sold its personal care business to American Industrial Partners for a sum of $920 million. The company had reported sales of approximately $3.7 billion during the previous year.