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Mercer International buying Canadian kraft pulp mills for $465 million


TORONTO – Mercer International Inc. has signed a deal to acquire
Daishowa-Marubeni International Ltd., which owns a bleached kraft
pulp mill in Peace River, Alta., and a 50 per cent stake in a joint
venture which operates a bleached kraft pulp mill in Quesnel, B.C.

Under the agreement with Marubeni Corp., Nippon Paper Industries
Co. Ltd., and Daishowa North America Corp., Mercer will pay $465
million for the assets.

Mercer says the deal will boost its annual production capacity
for pulp by about 41 per cent.

DMI also holds 20-year term renewable forest management
agreements and deciduous timber allocations in Alberta, with an
annual allowable cut of about 2.4 million cubic metres of hardwood
and 400,000 cubic metres of softwood.

The transaction is subject to customary closing conditions,
including anti-trust approvals.

The deal is expected to close in the fourth quarter of this year.

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