Domtar Corporation has announced its agreement to sell its Dryden pulp mill to First Quality Enterprises, who will retain all business operations of the mill in consistency with Domtar’s practices. The sale is the direct result of a deal between the Canadian Competition Bureau and Domtar, wherein bureau’s consent for Domtar’s acquisition of Resolute Forest Products Inc. was conditioned on mill’s sale.
February 28, 2023
Domtar Corporation has signed an agreement to sell its Dryden pulp mill to First Quality Enterprises. First Quality will continue the business operations of the mill in consistency with past practices, including retention and maintenance of employees and the surrounding community.
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The agreement is an extension of Domtar and the Canadian Competition Bureau’s agreement, wherein Domtar needs to sell its Dryden mill to acquire Resolute Forest Products Inc. Hence, the Dryden mill sale is subject to various regulatory conditions, such as approval of the Commissioner of Competition, and clearance under the Hart-Scott-Rodino Act.
The Resolute’s acquisition will close in first-half of 2023, followed by Dryden mill’s sale closing in early third quarter of 2023.
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Domtar Corporation is a part of the Paper Excellence Group, and has contracted BMO Capital Markets to act as its financial advisor. The transaction is backed by legal advisory as well, wherein Domtar, and McCarthy Tétrault LLP, and McMillan LLP are Domtar’s advisors, and Wachtell, Lipton, Rosen & Katz, and Osler, Hoskin & Harcourt LLP are First Quality’s.