Resolute, Paper Excellence Merger Receives Canadian Competition Bureau Approval
The Canadian Commissioner of Competition has entered into a consent agreement regarding the parties' business combination
The Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, and Resolute Forest Products, on Dec. 28 jointly announced that the Canadian Commissioner of Competition has entered into a consent agreement regarding the parties’ business combination.
Once the combination has been finalized, Domtar will acquire all of the outstanding common shares of Resolute stock for $20.50 per share and one contingent value right tied to potential duty deposit refunds of up to $500 million.
According to an announcement from Paper Excellence in July, the cash consideration represents an enterprise value of approximately $2.7 billion, including pension liabilities and excluding the Contingent Value Right (CVR) on softwood lumber duty deposit refunds.
The consent agreement filed by the Canadian Commissioner of Competition with the Competition Tribunal [on Dec. 28] completes one of the remaining conditions to the closing of the transaction.
The transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
