Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Antitrust Division won’t challenge Norbord-Ainsworth merger, (Mar 18, 2015)

By Linda O’Brien, J.D., LL.M.

Norbord Inc. and Ainsworth Lumber Co. Ltd. issued a joint statement on March 16 that the U.S. Department of Justice Antitrust Division has closed its review of their previously-announced merger. The companies expect the transaction to be completed on March 31.

Norbord Inc. is an international producer of wood-based panels with assets of more than $1 billion, employing approximately 1,900 people at 13 plant locations in the United States, Europe, and Canada. Headquartered in Toronto, Norbord is one of the world’s largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fiberboard, and related value-added products.

Based in Vancouver, Ainsworth Lumber Co. Ltd. is a leading manufacturer and marketer of OSB with a focus on value-added specialty products for markets in North America and Asia. Ainsworth’s four OSB manufacturing mills—located in Alberta, British Columbia and Ontario—have a combined annual capacity of 2.5 billion square feet.

On December 8, 2014, Norbord and Ainsworth announced that they had entered into an arrangement agreement under which Norbord and Ainsworth would merge to create a leading global wood products company focused on oriented strand board across North America, Europe, and Asia. Under the terms of the transaction, Norbord will acquire all of the outstanding common shares of Ainsworth in an all-share transaction.

On January 27, 2015, the transaction was overwhelmingly approved by the shareholders of both Norbord and Ainsworth. On January 30, 2015, the Supreme Court of British Columbia granted a final order approving the combination of Norbord and Ainsworth by way of a plan of arrangement under the Business Corporations Act.

Companies: Norbord Inc. and Ainsworth Lumber Co. Ltd.

News: AcquisitionsMergers Antitrust AntitrustDivisionNews