Shareholders give OK to West Fraser deal to buy Norbord, consolidating wood sector
The Canadian PressIndustry Forestry
(CP) TORONTO – Shareholders of West Fraser Timber Co. Ltd. and Norbord Inc. have approved a $4-billion all-stock deal that will marry two of Canada’s big wood product producers.
Norbord chief executive Peter Wijnbergen, who will join West Fraser as president of of engineered wood, said in November that the combined company aims to be a “one-stop shop” for construction customers.
The combined company says it will operate as West Fraser with headquarters in Vancouver and a regional office in Toronto, with West Fraser shareholders owning 56 per cent of the company, and Norbord shareholders owning about 44 per cent.
Executives said when the deal was announced that the new West Fraser will have 10,000 employees.
The deal comes as lumber prices have hit record highs twice in the past six months, according to lumber statistics from RBC Dominion Securities Inc. analyst Paul Quinn.