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Paper Excellence, Resolute merger clears key regulatory step

US$2.7-billion deal closes in first half of 2023
Resolute's Thunder Bay pulp and paper plant (TBayNewsWatch photo)

The Canadian Competition Bureau has given its approval to the merger between Resolute Forest Products and the Paper Excellence Group.

In a joint Dec. 28 news release by the companies, the consent agreement filed by the Canadian Commissioner of Competition with the Competition Tribunal is one of the final milestone regulatory steps to close the US$2.7-billion transaction, which is on course to finish sometime during the first half of 2023.

Included in the transaction, first announced last July, is Resolute’s Thunder Bay pulp and paper mill.

The deal will make Domtar, headquartered in Montreal and South Carolina, Resolute’s parent company.

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.