December 31, 2004

West Fraser Timber's $1.26B merger OK'd

PRINCE GEORGE, B.C.

West Fraser Timber has received notification under the Investment Canada Act that satisfies the final condition in its $1.26-billion merger with Weldwood of Canada.

The company says the deal will close by Dec. 31.

West Fraser also settled with International Paper over the proposed sale, including a reduction of the selling price by $30 million.

Earlier this month, West Fraser agreed to sell a pair of sawmills in Burns Lake with logging rights, and give up timber rights in the Cariboo region, to get the green light for its $1.26-billion merger with Weldwood.

The terms were a requirement by Canada’s Competition Bureau.

After reviewing the proposed merger, the Competition Bureau said it could result in a substantial lessening of competition in two local markets.

The agreement requires that West Fraser and Weldwood sell their sawmill interests in Babine Forest Products Ltd. in Burns Lake and Decker Lake, and related timber rights.

The Canadian Press

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