As Mercer withdrew its offer, Resolute Forest Products is another step closer to the hostile takeover of fellow Canadian pulp producer Fibrek.
Mercer International announced that the offer for all common shares of Fibrek has been withdrawn as the offer period expired on 27 April.
The offer was conditioned upon the takeover of at least 50.01% in the outstanding Fibrek shares which was not met as of the expiry time. Accordingly, Mercer will not acquire Fibrek.
All Fibrek shares that were previously tendered under the offer and not withdrawn will be returned promptly, Mercer said in an announcement.
Resolute had announced the planned hostile takeover for C$1 per share of Fibrek back in February. Subsequently, Mercer International had offered C$1.30 per share for Fibrek and had even increased its bid to C$1.40 on 11 April.
By 23 April Resolute held approximately 48.8% of the currently outstanding Fibrek shares. The company has extended its offer once again until 4 May. It needs at least 50.01% of the shares to clinch the transaction.
⇒ Find this article in its entirety and any associated background information in EUWID Pulp and Paper no. 18
Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.
⇒ Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.