Green light from the Competition Bureau for the acquisition of Resolute by Papier Excellence
The Resolute factory in Amos
Resolute Forest Products and Excellence Paper said Wednesday they received approval from Canada's Competition Bureau for the takeover bid which was valued at $2.7 billion.
The two companies announced in a joint press release that Canada's Commissioner of Competition has entered into a consent agreement to the business combination of the parties.
At the end of October, the shareholders of Resolute gave their consent to the acquisition offer by Groupe Papier Excellence, during a virtual meeting.
Paper Excellence said Wednesday that Domtar would acquire all of Resolute's outstanding common shares for $20.50 per share, plus a contingent value right linked to d' potential repayments of rights deposits of up to $500 million.
The transaction is expected to be completed in the first half of 2023, subject to the satisfaction or waiver of other conditions to closing the merger, it was stated.
When the transaction was announced, Resolute President and CEO Rémi G. Lalonde said that the acquisition of the Montreal company by Papier excellence was good news for Quebec.
It pointed out that the company would have access to more financial resources. He cited the Resolute newsprint mill in Gatineau as an example. The agreement provides for the completion of a feasibility study for the conversion of the plant to a packaging paper production plant.
At the end of October, however, Papier Excellence had been the subject of a critical report by the environmental association Greenpeace. The report alleged that the company would have an opaque structure and be linked to companies criticized for poor environmental practices. Paper Excellence rejected the report's findings.
Resolute stock was up $1.46 on Wednesday, or just over five percent, to $29.84 at the end of trading on the Toronto Stock Exchange.