Mercer International Inc. has signed a deal to acquire Daishowa-Marubeni International Ltd., which owns a bleached kraft pulp mill in Peace River, Alta., and a 50 per cent stake in Cariboo Pulp.
The agreement is for 465 million dollars.
West Fraser continues to own the other half of Cariboo Pulp.
Mercer says the deal will boost its annual production capacity for pulp by about 41 per cent.
DMI also holds 20-year term renewable forest management agreements and deciduous timber allocations in Alberta, with an annual allowable cut of about 2.4 million cubic metres of hardwood and 400,000 cubic metres of softwood.
The transaction is subject to customary closing conditions, including anti-trust approvals.
The deal is expected to close in the fourth quarter of this year.