By P&PC Staff
By P&PC Staff
October 4, 2018 – Mercer International has signed a deal to acquire Daishowa-Marubeni International (DMI)’s mill properties in Western Canada for $465 million.
The shareholders of DMI, Nippon Paper Industries Co., Ltd. and Marubeni Corporation will sell all DMI shares to Mercer, including assets for the Peace River pulp mill in Peace River, Alberta, a 50 per cent ownership of the Cariboo pulp and paper mill in Quesnel, British Columbia, and a 50 per cent interest in the Peace River Logging Corporation and associated Limited Partnership, a joint venture with the Woodland Cree First Nation.
“I believe all of DMI’s assets have bright futures,” says Tomoyuki (Steve) Iida, DMI president. “The mills have reliable access to fibre and are well-situated to serve multiple markets. Most importantly, our workforce operating these mills, logging operations and providing corporate administrative services are well experienced and highly skilled.”
Mercer, one of the world’s largest producers of NBSK pulp, says the deal will allow for a 41 per cent increase in pulp production. DMI’s total annual production capacity is approximately 648,500 ADMT premium-grade NBSK and NBHK market pulp.
The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions. Operations will continue as scheduled under DMI’s management until the transaction is closed.