WFTBF - West Fraser to buy Norbord for C$4B
Canadian lumber producer West Fraser Timber ([[WFTBF]]) said it would buy its smaller rival Norbord ([[OSB]] +11.2%) in an ~C$4B all-stock deal, strengthening its presence in North America and Europe.Shareholders of Norbordm will receive 0.675 West Fraser share for each share held, or C$49.35/share based on West Fraser’s closing price on Nov. 18.The offer represents a premium of 13.6% to Norbord stock’s Wednesday close, and West Fraser shareholders will own about 56% of the combined company on closing.The deal comes when lumber manufacturers are recovering after the COVID-19 pandemic forced many to shut their facilities and as demand for new homes and renovations boosts demand.West Fraser said the deal adds a strong cash flow generating business and it intends to retain all Norbord mills in North America and Europe.As part of the Transaction, West Fraser has secured $1.3B in committed credit facilities, which are available upon closing and estimated to provide $1.1B
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West Fraser to buy Norbord for C$4B