Domtar confirmes press reports regarding discussions with Paper Excellence on possible business combination or acquisition.
"Domtar acknowledges that its management has been in discussions with Paper Excellence about such a potential transaction. However, these discussions may or may not result in an agreement," the pulp and paper said, adding that it did not intend to make further comment "unless or until there is a transaction to announce."
Domtar counts among the biggest pulp and paper companies in North America with a leading role in the woodfree uncoated paper market. The company also plans to enter the containerboard market by the end of 2022. Domtar is converting one paper machne at Kingsport mill to 545,000 tpy of testliner and recycled fluting.
Last Monday, Bloomberg reported that Paper Excellence was exploring a deal to acquire Domtar and take it private. "A deal could value Domtar’s shares in the mid-$50s," Bloomberg wrote citing one person familiar with the deal.
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