Plum Creek Timber will be acquired by Weyerhaeuser for $8.4 billion. WY will be offering 1.6 of its shares to shareholders for each PCL share that they hold. The deal represents an almost 14% premium of PCL shares and is expected to finish in the first half of 2016, reports CNBC.
The deal between Plum Creek Timber and Weyerhaeuser will need approval from regulators and PCL shareholders before it can be completed. The CEOs of both companies aren’t expecting any problems with the acquisition, which will result in a $23 billion company, CNBC notes.
The acquisition of Plum Creek Timber by Weyerhaeuser will allow the latter to expand its presence in the southern U.S. The merger is expected to result in $100 million in cost savings, reports Bloomberg.
PCL shares were up 16% and WY shares were down 3% as of Noon Monday.
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