West Fraser Timber to acquire Norbord in all-stock deal valued at $3.1 billion

A $3.1-billion all-stock deal to take over Norbord Inc. will transform West Fraser Timber Co. Ltd. into a “global diversified wood products company,” CEO Ray Ferris said Thursday.

Norbord, the world’s largest manufacturer of oriented strand board housing panels, will expand West Fraser’s product mix, give it access to new markets in Europe and Eastern Canada and allow cost savings of about $80 million per year through synergies within two years, he said.

The deal requires approval of holders of two-thirds of Norbord shares and a simple majority vote by holders of West Fraser’s common and class B shares. Current Norbord investors would wind up with 44% of the company.

Brookfield Asset Management Inc., Norbord’s principal shareholder with a 43% stake, has agreed to support the agreement.

The deal is expected to be put to shareholder votes in January and close in 1Q 2021.