Weyerhaeuser to Buy Rival MacMillan Bloedel

Weyerhaeuser Co. agreed to buy rival forest products company MacMillan Bloedel Ltd. of Canada for stock valued at about $2.45 billion. The agreement would make Weyerhaeuser, already the world’s largest producer of softwood lumber and market pulp, a leader in packaging. When complete, the transaction would boost the annual sales of Weyerhaeuser, based in Federal Way, Wash., to about $13.3 billion from $10.8 billion. MacMillan Bloedel shareholders would get 0.28 share of Weyerhaeuser stock for each share of MacMillan Bloedel. The transaction, expected to close this fall, is subject to regulatory approval in the United States and Canada, court approval in Canada and a favorable vote by MacMillan Bloedel shareholders. Weyerhaeuser shares dropped $2.63 to close at $67.13 on the New York Stock Exchange. MacMillan Bloedel, based in Vancouver, rose $3.39 to close at $17.83 on Nasdaq.