Domtar, Paper Excellence Merger Received Key Approval

SEATTLE (Scrap Monster): Paper Excellence B.V. and Domtar Corporation announced that they have received Canadian Competition Act approval for its proposal to merge their businesses. The merger transaction involves acquisition of all of the issued and outstanding shares of Domtar common stock for $55.50 per share in cash. It must be noted that the merger plan was announced in May this year.

The Canadian Commissioner of Competition filed a consent agreement with the Competition Tribunal. The agreement fulfils the final condition to the closing of the merger transaction. According to the terms of the consent agreement, Domtar’s pulp mill in Kamloops, British Columbia will be sold in order to resolve the concerns raised by the Commissioner about the transaction’s implications on the purchase of wood fibre from the Thompson/Okanagan region.

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The press release further stated that the merger transaction remains on course to close during the final quarter of 2021.

Upon closing of the transaction, Paper Excellence plans to retain all of Domtar’s corporate and production facilities. Domtar will continue to be led by its management team. Also, the operations of Domtar will be continued as a stand-alone business entity.