MONTREAL: Sard Verbinnen & Company's New York office worked on behalf of Bowater Incorporated during its merger with Abitibi-Consolidated, announced January 30.
The new company, now dubbed AbitibiBowater, will become the third largest public paper company in America, and the eighth largest in the world, with an approximate market cap of $8 billion.
Sard's work on the deal was led by principal Jim Barron, along with two associates. Abitibi did not disclose any outside PR firm assisting them on the merger. Neither company immediately returned calls seeking comment.
The companies said in a joint announcement that the all-stock merger, expected to close in the third quarter of 2007, could save $250 million annually in cost synergies. The new company will be led by Bowater CEO David J. Paterson, while Abitibi CEO John W. Weaver will become executive chairman.
Both companies are large producers of newsprint, and cited the need to "adapt to lower demand for newsprint in North America" as a driving factor in the merger.