Domtar / Paper Excellence merger approved by Canadian Competition Bureau

Paper Excellence and Domtar Corporation have jointly announced that they’ve received Canadian Competition Act approval for their business combination whereby Karta Halten B.V., an affiliate of Paper Excellence, will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 (USD) per share in cash pursuant to an agreement and plan of merger dated May 10, 2021. The consent agreement filed by the Canadian Commissioner of Competition with the Competition Tribunal fulfills the final condition to the closing of the Merger. The consent agreement requires that, following the closing of the Merger, Domtar’s pulp mill in Kamloops, British Columbia be sold to resolve the Commissioner’s concerns about the Merger’s implications on the purchase of wood fibre from the Thompson/Okanagan region in British Columbia. The transaction is expected to close in the fourth quarter of this year.

The Canadian Competition Actis a federal law governing most business conduct in Canada. It contains both criminal and civil provisions aimed at preventing anti-competitive practices in the marketplace. Its purpose is to maintain and encourage competition in Canada in order to:

• Promote the efficiency and adaptability of the Canadian economy.

• Expand opportunities for Canadian participation in world markets, while at the same time recognizing the role of foreign competition in Canada.

• Ensure that small and medium-sized enterprises have an equitable opportunity to participate in the Canadian economy.

• Provide consumers with competitive prices and product choices.

In one of the printing industry’s most consequential and controversial votes held online Thursday, July 29, 2021, stockholders of Domtar Corporation approved the proposal to adopt a business combination with Paper Excellence B.V whereby Karta Halten B.V. (an affiliate of Paper Excellence), will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 (USD) per share. Of those entitled to vote, 81.93% were in favour of the merger.

Background and previous reporting. Back in May of this year we reported that Paper Excellence (Richmond, BC) and Domtar (Montreal & Fort Mill, South Carolina) had entered into a strategic business arrangement under which the Paper Excellence group of companies shall acquire all of the issued and outstanding shares of Domtar common stock for $55.50 (USD) per share in cash. Paper Excellence is a diverse manufacturer of pulp and paper – including printing and writing, packaging and specialty papers – that has built a vast worldwide network of mills and chipping plants. Domtar is an integrated manufacturer and marketer of uncoated, free-sheet paper in North America, and one of the largest manufacturers of pulp in the world. It has 13 pulp and paper mills and 10 manufacturing and converting facilities across Canada and the U.S. The all-cash mega-transaction represents a value of $2.8 billion (USD), or about $3 billion Canadian dollars.

After the transaction closes, Paper Excellence intends to continue the operations of Domtar – but as a private, standalone business. However, the merger is not without controversy. Paper Excellence is part of the multi-billionaire Widjaja family holdings of Indonesia. The acquisition will give Paper Excellence control over an additional 12 pulp and paper mills in North America (4 of them in Canada), as well as 9 manufacturing and converting facilities in 15 U.S. states. According to Bloomberg news, the transaction would take the U.S. publicly listed Domtar private. And according to the global organization Natural Resources Defense Council (NRDC), the deal “would put at its helm a family that’s internationally notorious for both human rights abuses and deforestation.”

As the Halifax Examiner reported earlier this year, Paper Excellence (through Northern Timber, an affiliate of Northern Pulp), owns 425,000 acres of woodland in Nova Scotia, and holds Crown leases on hundreds of thousands of acres. If the Domtar acquisition is approved by regulators under Canada’s Competition Act, Paper Excellence will gain 3 more mills in Canada that produce Northern Softwood Bleached Kraft Pulp – the Kamloops mill in British Columbia, and the Dryden and Espanola mills in Ontario. The newly-formed company would also take over the Windsor mill in Quebec, which the Domtar website notes “is the last fully-integrated paper mill in Canada with 400,000 acres of forest lands surrounding the mill.”

The Halifax Examiner’s incisive, investigative reporting by Joan Baxter also revealed that as recently as June 24, 2021, 68 organizations from around the world signed a letter to Domtar shareholders, financiers and customers. They urged them to “oppose the proposed acquisition by Paper Excellence.” The acquisition will also connect Domtar to Asia Pulp & Paper (APP) of Sinar Mas Group (SMG). The newspaper claimed that there’s clear evidence linking APP and SMG to 30 years of deforestation, forest and peat fires, and the destruction of wildlife habitat in the 2 million hectares of land under their control. It added that: “such fires and the company’s peat development have contributed to extensive greenhouse gas emissions. Reports also point to conflicts with local communities related to land grabbing, forest clearance and pulpwood plantation development in Sumatra and Kalimantan, Indonesia.” We’ll continue to follow this story closely and will report the facts back to you in an objective and timely manner.

Related Articles


  1. You can definitely see your expertise in the article you write. The world hopes for more passionate writers like you who aren’t afraid to mention how they believe. Always go after your heart.

  2. Hey! I know this is kinda off topic but I was wondering which blog platform are you using for this site? I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking at options for another platform. I would be awesome if you could point me in the direction of a good platform.

  3. My spouse and I absolutely love your blog and find a lot of your post’s to be exactly what I’m looking for. Does one offer guest writers to write content available for you? I wouldn’t mind composing a post or elaborating on most of the subjects you write about here. Again, awesome site!

  4. Have you ever thought about publishing an e-book or guest authoring on other sites? I have a blog based upon on the same ideas you discuss and would really like to have you share some stories/information. I know my visitors would value your work. If you are even remotely interested, feel free to send me an e mail.

  5. Someone necessarily help to make significantly articles I might state. This is the first time I frequented your web page and so far? I amazed with the research you made to create this actual post incredible. Great task!

  6. What i do not realize is if truth be told how you’re now not really a lot more smartly-appreciated than you may be right now. You are so intelligent. You recognize therefore significantly on the subject of this topic, produced me individually believe it from numerous various angles. Its like men and women aren’t fascinated unless it’s something to accomplish with Lady gaga! Your own stuffs excellent. Always care for it up!

  7. Heya! I realize this is somewhat off-topic but I had to ask. Does running a well-established blog like yours take a lot of work? I’m completely new to writing a blog but I do write in my diary daily. I’d like to start a blog so I will be able to share my own experience and views online. Please let me know if you have any suggestions or tips for new aspiring bloggers. Appreciate it!

  8. I believe what you postedtypedsaidthink what you postedwrotesaidbelieve what you postedwrotethink what you postedtypedWhat you postedtyped was very logicala bunch of sense. But, what about this?consider this, what if you were to write a killer headlinetitle?content?typed a catchier title? I ain’t saying your content isn’t good.ain’t saying your content isn’t gooddon’t want to tell you how to run your blog, but what if you added a titleheadlinetitle that grabbed a person’s attention?maybe get a person’s attention?want more? I mean %BLOG_TITLE% is a little plain. You could look at Yahoo’s home page and see how they createwrite post headlines to get viewers to click. You might add a related video or a pic or two to get readers interested about what you’ve written. Just my opinion, it might bring your postsblog a little livelier.

  9. Игра на деньги в Лаки Джет вдохновит тебя на достижение новых высот и позволит ощутить вкус победы.Показывай свое счастливое лицо с Lucky Jet – самым крутым развлечением на 1win.


Please enter your comment!
Please enter your name here

- Advertisement -