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Paper Excellence to take over Domtar

Deal. Businessmen shaking hands.
Paper Exellence and Domtar reached agreement on business takeover.
12 May 2021 − 

Domtar will continue to operate as a stand-alone company under its current management, says Paper Excellence.

Paper Excellence will take over Domtar. Yesterday, the two companies announced they had entered into a strategic business combination under which the Paper Excellence group of companies will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash. This represented an enterprise value of approximately $3.0 billion, the companies said.

According to Paper Excellence, the transaction is meant to accelerate the company's growth strategy, including entry into attractive US market. Domtar would also benefit from the transaction as it would expand Domtar's financial resources, as well as its potential customer base and product offerings.

The transaction is expected to close in the second half of 2021, subject to Domtar shareholder approval, receipt of the required regulatory approvals and other customary closing conditions, the companies explained.

The deal was already making news at the start of May, when Domtar confirmed press reports on the company's management being in discussions with Paper Excellence on potential takeover.

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