RICHMOND, B.C. -- Domtar Corp.'s pulp mill in Kamloops, B.C., will be sold as its takeover by B.C.-based Paper Excellence cleared its final hurdle with Canadian Competition Act approval.
The companies say the facility will be sold to resolve the Competition Commissioner of Canada's concerns about the implication on the purchase of wood fibre from the Thompson/Okanagan region in British Columbia.
The deal slated to close in the fourth quarter will see Karta Halten B.V., an affiliate of Paper Excellence, acquire Domtar shares for US$55.50 per share in cash as presented in an agreement dated May 10 that implies an enterprise value of about US$3 billion.
In July, Domtar shareholders overwhelmingly approved the takeover with more than 81 per cent of outstanding shares were voted in favour of the merger at a special meeting.
Paper Excellence, a global diversified manufacturer of pulp and specialty, printing, writing and packaging papers, operates seven mills in Canada producing and shipping over 2.8 million tonnes of product annually with a workforce of more than 2,800.
Montreal and South Carolina-based Domtar is an integrated manufacturer and marketer of uncoated freesheet paper in North America and one of the largest manufacturers of pulp in the world. It has 13 pulp and paper mills and 10 manufacturing and converting facilities in Canada and the United States.