Approval for Change-in-Control to Weyerhaeuser
10/5/99
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RELAYED TEXT STARTS HERE:
Title: British Columbia Approves Change-in-Control to Weyerhaeuser
for Forest Tenures
Source: Business Wire
Status: Copyright 1999, contact source for permission to reprint
Date: October 5, 1999
FEDERAL WAY, Wash.--(BUSINESS WIRE)--Oct. 5, 1999--Weyerhaeuser
Company and MacMillan Bloedel Limited (MB) announced that British
Columbia's Minister of Forests, Hon. David Zirnhelt, has offered
approval in principle to the change of control of forest tenures and
permits to Weyerhaeuser Company from MacMillan Bloedel.
The license areas include more than 800,000 hectares of public forest
land (more than 2 million acres) located in B.C.'s coastal region,
with an annual harvest volume of 5.6 million cubic meters (196.5
million cubic feet). The approval process included public hearings in
nine communities.
On change of control to Weyerhaeuser, five per cent of the allowable
annual cut of the Crown timber portion of MacMillan Bloedel's timber
agreements automatically reverts to the Crown. After closing the
transaction, Weyerhaeuser intends to apply for reinstatement of the
five per cent by submitting a job creation plan for the minister's
review and consideration.
This approval joins regulatory consent in other Canadian
jurisdictions, moving Weyerhaeuser significantly closer to finalizing
its acquisition of MB. Similar approval has been granted for forest
and facility licenses in Ontario. The Canadian Competition Bureau has
issued a no-action letter, and the Canadian Ministry for
International Trade has consented to a change in control for softwood
lumber quotas.
The acquisition is subject to regulatory approval by Investment
Canada, a favorable vote by MacMillan Bloedel shareholders, final
court approval in Canada, and other customary closing conditions.
Weyerhaeuser Company (NYSE:WY), one of the world's largest integrated
forest products companies, was incorporated in 1900. In 1998, sales
were $10.8 billion. It has offices or operations in 12 countries with
customers worldwide. Weyerhaeuser is principally engaged in the
growing and harvesting of timber; the manufacture, distribution and
sale of forest products; and real estate construction, development
and related activities. Additional information about Weyerhaeuser's
businesses, products or practices is available at
www.weyerhaeuser.com.
MacMillan Bloedel (TSE:MB)(Nasdaq:MMBL) is one of Canada's largest
forest products companies with integrated operations in Canada, the
United States, and Mexico. The products of MacMillan Bloedel and its
affiliate companies are marketed throughout the world and include
lumber, panelboard, engineered lumber, containerboard and corrugated
containers. Additional information about MacMillan Bloedel is
available at www.mbltd.com.