The $4.3 billion merger between paper and packaging giants International Paper Inc. (NYSE: IP) and Temple-Inland Inc. (NYSE: TIN) has won approval from the US Department of Justice. The DoJ did require that the combined companies shed some assets, though, as part of the deal to avoid anti-trust concerns.
International Paper first offered $3.3 billion for Temple-Inland, but the deal was rejected. The $4.3 billion price ($32/share) was later approved by both companies, and the deal is expected to close promptly.
Under the terms of the consent decree with the DoJ, International will “undertake the post close divesture of 970,000 tons of containerboard mill capacity within four months, with the possibility of two 30-day extensions.” The mills being sold are Temple-Inland’s plants in Ontario, California, and New Johnsonville, Tennessee, and International’s plant in Hueneme, California.
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