Quebec Superior Court Issues Final Order Approving the Merger of Abitibi-Consolidated and Bowater
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MONTREAL, QC and GREENVILLE, SC, Aug. 7 /-- Abitibi-Consolidated Inc. (NYSE:ABY)(NYSE:TSX:)(NYSE:A) and Bowater Incorporated (NYSE: BOW)(NYSE:TSX:)(NYSE:BWX) today announced that the Superior Court of Quebec has issued a final order approving the Plan of Arrangement for the merger of the two companies. The Court's final approval follows the approval by Abitibi-Consolidated and Bowater shareholders. The combination remains subject to review by the United States Department of Justice. Abitibi-Consolidated and Bowater continue to expect to close the transaction before the end of the third quarter.
The combination of Abitibi-Consolidated and Bowater is expected to generate annualized synergies of at least $250 million.
The combined company, which will be called AbitibiBowater Inc., will produce a wide range of newsprint and commercial printing papers, market pulp and lumber products. It will be the eighth largest pulp and paper manufacturer in the world. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. It will also be among the world's largest recyclers of newspapers and magazines, and a global leader in sustainable forest management through independent third-party certification.
About Abitibi-Consolidated Inc.
Abitibi-Consolidated is a global leader in newsprint and commercial printing papers as well as a major producer of wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is among the largest recyclers of newspapers and magazines in North America, diverting annually approximately 1.7 million tonnes of paper from landfills.
About Bowater Incorporated
Bowater Incorporated is a leading producer of coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater has 12 pulp and paper mills in the United States, Canada and South Korea. In North America, it also operates one converting facility and owns 10 sawmills. Bowater's operations are supported by approximately 708,000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates 6 recycling plants and is one of the world's largest consumers of recycled newspapers and magazines.
Source: ABITIBI-CONSOLIDATED INC.
CONTACT: Investors: Francesco Alessi, Abitibi-Consolidated, (514) 394-2341, falessi@abitibiconsolidated.com; Investors: Duane A. Owens, Bowater,
(864) 282-9488; Media: Seth Kursman, Abitibi-Consolidated, (514) 394-2398, seth_kursman@abitibiconsolidated.com; Media: Kathleen M. Bennett, Bowater,
(864) 282-9452
