Bowater to Acquire Avenor for $1.8 Billion

Bowater Inc., the United States’ largest newsprint maker, said it will buy Canadian rival Avenor Inc. for $1.8 billion in cash and stock. The companies said the combination would create the world’s second-largest newsprint producer after Abitibi-Consolidated Inc. of Toronto. Avenor had rejected a $1.4-billion offer from Abitibi two weeks ago. Greenville, S.C.-based Bowater said it would assume debt of $700 million and acquire all outstanding shares of Montreal-based Avenor, the world’s fourth-largest newsprint maker, for $24.67 per share in cash and stock. On the New York Stock Exchange, Avenor rose $2 to close at $23.94 while Bowater fell 88 cents to close at $49.81.