West Fraser Timber Co. Ltd. announced Thursday a agreement to buy Canada-based oriented strand board (OSB) producer Norbord Inc. (OSB.T) in a stock deal valued at C$4 billion ($3.1 billion). Under terms of the deal, Norbord shareholders will receive 0.675 of a West Fraser share for each Norbord share they own. Based on Wednesday's closing prices, that values Norbord shares at C$49.35 ($37.78), a 13.6% premium. Norbord's U.S.-listed stock was up 2.4% in premarket trading, prior to a trading halt for news. The deal is expected to close in the first quarter of 2021. Norbord's stock has rallied 24.2% year to date through Wednesday, while the S&P 500 has gained 10.4%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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