The shareholders of Daishowa-Marubeni International Ltd. (“DMI”), Nippon Paper Industries Co., Ltd. and Marubeni Corporation, has just announced that they have entered into a share purchase agreement to sell all DMI shares to Mercer International Inc. (“Mercer”). DMI’s assets include the Peace River Pulp Mill in Peace River, Alberta, a 50% ownership of Cariboo Pulp and Paper Mill in Quesnel, British Columbia, and a 50% interest in the Peace River Logging Corporation and associated Limited Partnership, a joint venture with the Woodland Cree First Nation.
Mr. Tomoyuki (Steve) Iida, DMI President, stated: “I believe all of DMI’s assets have bright futures. The mills have reliable access to fibre and are well-situated to serve multiple markets. Most importantly, our workforce operating these mills, logging operations, and providing corporate administrative services are well experienced and highly skilled.”
The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions. Operations will continue as scheduled under DMI’s management until the transaction is closed.
Daishowa-Marubeni International Ltd. is a forest products company first established in Western Canada in 1969 and co-owns and operates two modern kraft pulp mills in British Columbia and Alberta with a total annual production capacity of approximately 648,500 ADMT of premium grade NBSK and NBHK market pulp.