Weyerhaeuser is buying Plum Creek for US$8.44 billion to form the world's biggest timberland and forest products companies. The new company will keep the Weyerhaeuser name and own more than 13 million acres (5.6 million hectares) across the United States. The total worth of the combined companies is US$23 billion based on current share prices.<\/p>\n
The companies anticipate that the move will save up to US$100 million every year.<\/p>\n
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Plum Creek shareholders will receive 1.60 shares of Weyerhaeuser for each share of\u00a0Plum Creek held.<\/p>\n
\u201cWe saw a unique opportunity to combine the two industry leaders,\u201d Weyerhaeuser's CEO Doyle Simons said in an interview. \u201cDiscussions had been going on for some time and finally the stars aligned,\u201d he said.<\/p>\n
\u201cThe breadth and diversity of our combined land and timber assets uniquely position the new company to capitalize fully on the improving housing market,\u201d said Plum Creek CEO Rick Holley in a statement.<\/p>\n
Doyle R. Simons will be the president and CEO of the combined company. Plum Creek CEO\u00a0Rick R. Holley\u00a0will serve as a nonexecutive chairman.<\/p>\n
The acquisition is expected to close in the first quarter of 2016 or early in the second quarter.\u00a0Following closing, Weyerhaeuser and Plum Creek shareholders will own approximately 65% and 35%, respectively, of the combined company's common stock.<\/p>","protected":false},"excerpt":{"rendered":"
Weyerhaeuser is buying Plum Creek for US$8.44 billion to form the world’s biggest timberland and forest products companies. The new company will keep the Weyerhaeuser name and own more than 13 million acres (5.6 million hectares) across the United States. … Continue reading