Weyerhaeuser and Plum Creek shareholders have jointly approved the merger between the two companies announced in November.
98 percent of the shares voting at the Weyerhaeuser special meeting voted in favor of the proposal. At the same time, Plum Creek's stockholders overwhelmingly approved the proposed merger of Plum Creek and Weyerhaeuser. Plum Creek common stockholders will receive 1.60 Weyerhaeuser common shares for each share of Plum Creek common stock.
Weyerhaeuser is buying Plum Creek for US$8.44 billion to form the world's biggest timberland and forest products companies. The new company will keep the Weyerhaeuser name and own more than 13 million acres (5.6 million hectares) across the United States. The total worth of the combined companies is US$23 billion based on current share prices.
The companies anticipate that the move will save up to US$100 million every year.
The acquisition is expected to close in the first quarter of 2016 or early in the second quarter. Following closing, Weyerhaeuser and Plum Creek shareholders will own approximately 65% and 35%, respectively, of the combined company's common stock.
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