The Domtar Mill in Espanola is up for sale but that is not required as part of a company acquisition.
Domtar spokesperson Bonnie Skene says Domtar’s new owner Paper Excellence acquired the company in July of 2022.
She says the company then entered talks to acquire another forest products company Resolute, and in anticipation of the Canadian Competition Bureau requiring them to sell off some of their properties, put the Espanola operation up for sale.
She emphasizes, however, on December 29th, the bureau ordered that Domtar sell its operations in Dryden and Thunder Bay as part of the Resolute purchase, but not the Espanola operation.
In its decision, the bureau stated the proposed transaction would result in market shares well above the 35 per cent threshold established in the Bureau’s Merger Enforcement Guidelines, so the sale of the Dryden and Thunder Bay operations would satisfy the requirements.
Skene adds the process will now focus on the acquisition of Resolute and the Espanola Mill may not be sold at all, adding the next step in the process is now underway.
The Espanola Mill employs around 450 people and is a mainstay in the community.