Domtar, Weyerhaeuser Agree to 3 Billion Dollar Merger
By: Import User
Updated: January 7, 2009
It didn`t take long for word to spread Wednesday at Domtar`s Ashdown mill that new ownership was in the works.
Weyerhaeuser company, one of the nation`s largest forest product corporations, is merging its fine paper business with Canadian papermaker Domtar. It is a 3.3 billion dollar deal that includes the Ashdown mill. General manager Buddy Allen sees the merger as a positive move for the company. "This makes us more competitive in the market and will ultimately give us an edge over competitors." The Ashdown mill employs more than 11 hundred workers. Allen says he doesn`t expect any layoffs or cutbacks. "This is just another consolidation in the paper business. It`s what we have to do to survive," Allen said. The merger isn`t a done deal yet. It must first get approval by anti-trust and securities regulators in the United States and Canada. Both companies hope to have the merger finished by early 2007.
