Abitibi-Consolidated and Bowater complete merger
AbitibiBowater Inc. announced that it has completed its merger of Abitibi-Consolidated Inc. and Bowater Incorporated.
With pro forma revenues of approximately US$8 billion in 2006, AbitibiBowater is the third largest publicly traded paper and forest products company in North America and the eighth largest in the world.
The common stock of AbitibiBowater will trade on the New York Stock Exchange and Toronto Stock Exchange under the ticker symbol “ABH”. AbitibiBowater is a United States reporting company, reporting in United States GAAP, with headquarters and executive offices located in Montréal, Québec.
The Company expects to achieve annualized synergies of at least US$250 million within two years from improved efficiencies in such areas as production, selling, general and administrative (SG&A) costs, distribution and procurement.
As part of the closing of the combination of Abitibi-Consolidated and Bowater to form AbitibiBowater, Bowater Canada Inc., an exchangeable share public company subsidiary of Bowater, amended its articles in order to, among other matters, change its name to AbitibiBowater Canada Inc. and change each of its issued and outstanding exchangeable shares for 0.52 of a new exchangeable share. The exchangeable shares, which previously traded on the Toronto Stock Exchange under the symbol “BWX”, are now traded on the Toronto Stock Exchange on a post-consolidation basis under the symbol “AXB” and are exchangeable on a one-for-one basis for shares of AbitibiBowater common stock.