Brief: Mercer International Inc to Acquire Daishowa-Marubeni International Ltd

Nippon Paper Industries

04/10/2018 08:07

Oct 4 (Reuters) - Mercer International Inc  MERC.O :
    * TO ACQUIRE DAISHOWA-MARUBENI INTERNATIONAL LTD. ("DMI")
SIGNIFICANTLY EXPANDING ITS PULP OPERATIONS
    * CONSIDERATION OF $359.2 MILLION (C$465 MILLION), WHICH
INCLUDES
MINIMUM WORKING CAPITAL OF $85.7 MILLION (C$111 MILLION)
    * MERCER INTERNATIONAL - ENTERED AGREEMENT WITH MARUBENI
CORP,
NIPPON PAPER INDUSTRIES AND DAISHOWA NORTH AMERICA TO BUY ALL
SHARES OF DMI
    * MERCER INTERNATIONAL - AS RESULT OF TRANSACTION, MERCER'S
ANNUAL
PRODUCTION CAPACITY FOR PULP WILL INCREASE BY ABOUT 41% TO 2.2
MILLION ADMTS
    * MERCER HAS ARRANGED A FULLY COMMITTED FINANCING IN AMOUNT
OF
$350 MILLION TO FINANCE ACQUISITION
    * MERCER INTERNATIONAL- AS A RESULT OF THIS TRANSACTION,
MERCER'S
ANNUAL SURPLUS ENERGY WILL INCREASE BY APPROXIMATELY 8% TO
890,000 MWHS
    * ACQUISITION OF DMI WILL GENERATE MATERIAL OPERATING
SYNERGIES IN
RANGE OF APPROXIMATELY $15 TO $20 MILLION PER YEAR

Source text for Eikon:  ID:nGNX2X1h31 
Further company coverage:  MERC.O 

 ((Reuters.Briefs@thomsonreuters.com;))