Abitibi-Consolidated Company Profile and Bowater Merger

Abitibi-Consolidated was a leading global paper and forest products company with operations in North America and Europe.

The company was founded in 1948 through the merger of Abitibi Power and Paper Company and Consolidated Paper Corporation.

Abitibi-Consolidated was a major player in the paper and forest products industry, with a diverse portfolio of products and operations.

The company's products included paper, pulp, packaging, and lumber, among others.

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The Abitibi-Bowater Merger was a significant event in the history of Abitibi-Consolidated. On January 29, 2007, Abitibi-Consolidated and Bowater announced a merger to create AbitibiBowater.

The combined company was the third largest pulp and paper company in North America and the eighth largest in the world. It had annual revenues of about $7.9 billion and a market capitalization of about $2.4 billion.

AbitibiBowater had a diverse product line, including newsprint, uncoated and coated mechanical papers, market pulp, and wood products. It also owned or operated 32 pulp and paper facilities and 35 wood product facilities mainly in Eastern Canada and the Southeastern U.S.

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The merger was expected to generate significant cost savings, with estimates of $250 million in annual costs cut as a result of efficiency in areas such as production, selling, general and administrative costs, distribution, and procurement.

The combined company had about $5 billion in debt, but the savings and continued forest land sales were expected to help reduce that amount.

Abitibi Bowater Inc v Canada was a significant court case that had a major impact on the Abitibi-Bowater merger. The Canadian government challenged the merger, citing national security concerns.

In 2007, the Canadian government intervened in the merger, arguing that it would give control of a significant portion of Canada's newsprint market to a single company.

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In January 2007, Abitibi-Consolidated and Bowater announced a merger to create AbitibiBowater.

The merger created the third largest pulp and paper company in North America, and the eighth largest in the world.

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AbitibiBowater had annual revenues of about $7.9 billion and a market capitalization of about $2.4 billion.

The combined company would be operationally and financially stronger, and could compete better globally while adapting to lower demand for newsprint in North America.

Bowater shares climbed $4.92, or 22 percent, to $27.07 in midday trading on the New York Stock Exchange, while Abitibi's U.S. shares rose 66 cents, or 25 percent, to $3.30.

Abitibi President and Chief Executive John W. Weaver will become executive chairman of AbitibiBowater, and Bowater Chairman, President and CEO David J. Paterson will serve as president and CEO.

Here are the key facts about the merger:

The combined company will own or operate 32 pulp and paper facilities and 35 wood product facilities located mainly in Eastern Canada and the Southeastern U.S.

The combined company will have about $5 billion in debt, which will be reduced through savings and continued forest land sales.

Abitibi-Consolidated is a company that produces a wide range of newsprint and commercial printing papers, market pulp, and wood products.

The company operates 31 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom, and South Korea.

Abitibi-Consolidated is among the world's largest recyclers of newspapers and magazines, and it has more third-party certified sustainable forest land than any other company in the world.

The company's Bridgewater Paper Mill in Cheshire, UK, produces around 300,000 tonnes of newsprint each year.

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