Abitibi merges with Bowater

Jan. 29 -- Abitibi-Consolidated Inc. and Bowater Inc. are merging in a deal that will create what the companies call one of the largest consumers of recycled newspapers and magazines.

The deal, which creates a company with approximately $7.9 billion in annual revenue, will save approximately $250 million of annual costs.

The two companies are combining as they face lower demand for newsprint in North America, they said.

The new company, called AbitibiBowater Inc., will be based in Montreal with a U.S. regional office in Greenville, S.C.

"This is a logical strategic step to address the realities of today´s marketplace," said David J. Patterson. He currently is CEO at Bowater and will take on that role at the combined company.

January 29, 2007
Waste News