West Fraser Timber is to relinquish two mills and cut its timber cutting rights in a deal with federal competition regulators which will allow the company to acquire Weldwood of Canada.
West Fraser has signed an agreement to sell its 90% stake in two sawmills in British Columbia, as well as cutting rights and a wood treatment plant. It will also reduce its harvesting in the Williams Lake area, allowing the provincial government to sell cutting rights to other firms.
The C$1.26bn acquisition is shortly expected to receive approval from the minister responsible for the Investment Act Canada, with completion due by the end of 2004.
The new company will become North America’s third largest lumber producer, with a capacity of 3.5 billion board feet of timber a year.
