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Chuetsu buys Mitsubishi

Chuetsu Pulp & Paper is set to dole out $544 million for Mitsubishi Paper Mills Ltd, a company more than twice its …

Chuetsu Pulp & Paper is set to dole out $544 million for Mitsubishi Paper Mills Ltd, a company more than twice its size. The two enterprises anticipate the transaction will lead to a cut in production, pulp, sales, distribution and operation costs of 5 billion yen per year.

Chuetsu will pay 0.555 a share for each share of Mitsubishi Paper, and the two companies will officially combine operations on October 1st. Chuetsu will issue 180.7 million new shares to finance the purchase.