Reuters: Mergers News: UPDATE 1-Chile Copec forestry arm to buy Canada panel firm

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UPDATE 1-Chile Copec forestry arm to buy Canada panel firm Jun 8th 2012, 18:35 Fri Jun 8, 2012 2:35pm EDT * Arauco's Canadian unit to buy Flakeboard for $242.5 mln * Deal awaits regulatory approval in Canada, U.S. June 8 (Reuters) - Chilean industrial conglomerate Copec's forestry arm Arauco said on Friday its Canadian unit would buy Canada's wood panel firm Flakeboard for $242.5 million, as Arauco seeks to consolidate its position in the North American wood panel market. Arauco said the purchase would make it the top wood panel producer of the Americas, and should be finalized in the second half of the year, pending regulatory approval in Canada and the United States. Flakeboard operates two wood panel plants in Canada and five in the United States, said Arauco, one of the world's top wood pulp exporters. "Once the acquisition of Flakeboard is finalized, Arauco's installed capacity in the United States will allow it to produce up to 2.9 million cubic meters of panels a year," Arauco said in a statement to Chile's regulator. Copec, which also owns the world's third-largest commercial fishing company and the main fuel distributor in Chile and Colombia, is on the lookout for more investment opportunities, CEO Eduardo Navarro told the Reuters Latin America Investment Summit last week. Arauco recently bought the Moncure wood panel plant in North Carolina. The firm did not provide details on how it would finance the purchase of Flakeboard. Shares in Copec were trading over 1 percent stronger following the announcement, but then reversed direction to trade 0.22 percent lower on Friday afternoon, underperforming Santiago's blue-chip IPSA stock index, which was up 0.37 percent. Link this Share this Digg this Email Reprints

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