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Paper Excellence to Buy Resolute Forest for $1.6 Billion

  • Deal comes as North American supplies of paper are tight
  • Resolute shares soar to most ever as transaction announced
High quality paper is moved into boxcars for shipment by rail at the Resolute Forest Products mill in Thunder Bay, Canada, Ontario, on Thursday, Jan. 7, 2016 

High quality paper is moved into boxcars for shipment by rail at the Resolute Forest Products mill in Thunder Bay, Canada, Ontario, on Thursday, Jan. 7, 2016 

Photographer: James MacDonald
Updated on

Canadian pulp-and-paper producer the Paper Excellence Group agreed to buy Resolute Forest Products Inc. for $1.6 billion in cash in its second major deal in 14 months.

Holders of each Resolute share will get $20.50 and a so-called contingent value right on future softwood lumber duty deposit refunds, closely held Paper Excellence said Wednesday in a statement. The deal comes as supplies of paper in North America are expected to remain tight into 2023 after mills converted to cardboard to meet rising demand for boxes and packing materials during a pandemic-fueled e-commerce boom.