Canadian paper company Abitibi-Consolidated announced today that it has completed its merger with US firm Bowater Incorporated.
Stock for the newly-merged firm, which will be the third largest publicly traded paper and forest products company in North America and the eighth largest in the world, will be listed on both the New York and Toronto stock exchanges.
The agreed merger means Abitibi shareholders taking on 48% of the new company, with Bowater shareholders owning 52%.
The company said it expects to save around £120 million a year within two years through improved efficiencies in production, sales and administration as well as distribution and procurement departments.
John W Weaver, executive chairman of AbitibiBowater, said: “By combining Abitibi-Consolidated and Bowater, we have created a global leader that is well positioned to compete in an increasingly challenging global market. We look forward to drawing on the best practices from both organisations and on the strengths of a proven management team to deliver greater value to our stockholders, customers, employees and other stakeholders.”
Plants
Through this combination, AbitibiBowater will be a more dynamic and competitive organisation.
David J Paterson, AbitibiBowater
AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. Before the merger, South Carolina-based Bowater had 12 pulp and paper mills in the United States, Canada and South Korea. The company also operated six recycling plants.
Following the sale of assets required to satisfy the US Department of Justice regarding the merger, the new merged company will own or operate 31 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 80 countries, the company said it is among the world's largest recyclers of newspapers and magazines, and has more third-party certified sustainable forest land than any other company in the world.
“This transaction marks a new and important chapter in our collective history,” said David J Paterson, president and chief executive officer of AbitibiBowater. “Through this combination, AbitibiBowater will be a more dynamic and competitive organisation that will create long-term value for our stockholders and the communities in which we operate.”
In the UK, Abitibi-Consolidated operates the Bridgewater Paper Mill in Cheshire, which produces around 300,000 tonnes of newsprint each year.
One of the pioneers of doorstep recycling in the UK, Abitibi-Consolidated Recycling Europe has diversified in recent years to collect other materials like cans, textiles, glass, plastics and green waste from the kerbside (see letsrecycle.com story).
Subscribe for free