West Fraser Timber Co. Ltd. shares closed 4% higher Monday (up $3.24 per share) on the news that it has completed the previously announced acquisition of Ontario's Norbord Inc.
The $4 billion acquisition, announced in November, officially closed Monday.
As a result of the acquisition, Norbord’s stock will be delisted on the New York Stock Exchange, and West Fraser’s stock will now list on the NYE under the symbol WFG. West Fraser’s stock symbol on the TSX will also change from WFT to WFG.
"Today marks a new era for all West Fraser employees and shareholders with the completion of the Norbord transaction,” said West Fraser CEO Raymond Ferris,
“The combination of two top-calibre employee teams manufacturing sustainable products that are essential for a low-carbon economy positions West Fraser well going forward.”
West Fraser has bought a number of mills in the U.S. in recent years. The acquisition of Norbord marks the first major acquisition within Canada east of the Alberta border, and it expands its footprint beyond North America.
According to its most recent investor presentation, West Fraser owns 33 lumber mills, seven panel mills and five pulp in paper mills in North America.
Norbord has five plants in Canada, seven in the U.S., and several in the U.K. and Belgium.