By: E&P Staff Montreal-based AbitibiBowater Inc. announced today that it completed its merger with Bowater Inc., forming the third largest publicly traded paper and forest-products company in North America and the eighth largest in the world, with pro forma revenues of approximately US$8 billion in 2006.
A U.S. reporting company, AbitibiBowater common stock will trade on the New York Stock Exchange and Toronto Stock Exchange.
The merged company said it expects annualized synergies of at least US$250 million within two years through efficiencies in production, sales, general and administrative costs, distribution and procurement.
"We look forward to drawing on the best practices from both organizations and on the strengths of a proven management team to deliver greater value to our stockholders, customers, employees and other stakeholders," AbitibiBowater Executive Chairman John W. Weaver said in a statement. AbitibiBowater President and CEO David J. Paterson called the expected savings of $250 million "just the first step toward this goal."
The company also noted that its public company subsidiary Bowater Canada Inc. amended its articles in order to, among other matters, change its name to AbitibiBowater Canada Inc. and change each of its issued exchangeable shares for 0.52 of a new exchangeable share. The shares are exchangeable on a one-for-one basis for shares of AbitibiBowater common stock.
Following the divestiture of its Snowflake, Arizona, recycled newsprint mill (E&P Online, Oct. 23), required by the U.S. Department of Justice, AbitibiBowater will own or operate 31 pulp and paper facilities and 35 wood products facilities in the United States, Canada, the United Kingdom and South Korea. Among the largest recyclers of newspapers and magazines, AbitibiBowater claims more third-party-certified sustainable forest land than any other company.
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