Tembec will be experiencing a friendly takeover in 2017.
The Quebec-based company which operates a lumber industry in Kapuskasing will be bought in a US $807 million deal by Florida company Rayonier Advanced Materials Inc.
Tembec CEO James Lopez says the deal announced Thursday provides an ideal partner for their company, given the favourable nature of both companies’ products and resources.
He says by joining forces, Tembec is diversifying their product and expanding their forest products market.
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Lopez also says that Rayonier is committed to Tembec’s operations in both Canada and France.
The proposed takeover requires approvals from the courts, regulators, and shareholders before being expected to close in late 2017.