Deal between Weyerhauser, Plum Creek worth an estimated $8.4 billion.
BY JACOB PALMER | DIGITAL NEWS EDITOR
The merger of two timber heavyweights with Oregon interests — Weyerhauser, Plum Creek — is worth an estimated $8.4 billion.
The companies agreed on what they’re calling “a definitive agreement to create the world’s premier timber, land and forest products company.”
The company will keep the Weyerhaeuser name and have more than 13 million acres of timberland, the companies said Sunday. It will be worth $23 billion based on current share prices.
The recovery of the housing market in recent years has spurred construction of new homes. That has increased demand for lumber and wood products used in home interiors, which benefits companies like Weyerhaeuser and Plum Creek.
“The breadth and diversity of our combined land and timber assets uniquely position the new company to capitalize fully on the improving housing market,” said Plum Creek CEO Rick Holley in a statement.
(SOURCE: AP)
The merger still needs to be approved by shareholders.
Weyerhaueser has a strong presence in Oregon. It contributed heavily to a much-watched 2009 tax initiative and operates at least five major harvesting sites in the state.
Plum Creek has three sites in the Beaver State after entering Oregon in 2001.
(SOURCE: Portland Business Journal)
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