According to a report by Reuters, Potlatch Corp, a forest products company based in the United States (U.S.), is nearing an all-stock acquisition deal with Deltic Timber Corp.
The acquisition has the potential to offer Potlatch more stability in its bid to cope with price volatility in the lumber market. Even before the U.S. was struck by a series of hurricanes this year, residential construction in the country has been stagnating due to land and skilled labour shortages alongside rising costs for building materials.
After shareholder Southeastern Asset Management Inc. asked the firm to explore the acquisition, Deltic has been working with investment bank Goldman Sachs Group Inc. and law firm Davis Polk & Wardwell LLP, as stated by Reuters.
Source: Reuters
