Louisiana - Pacific said it will pay C$ 3.76 per share for all of the remaining common shares in
the Canadian lumber company, resulting in an approximate 30 per cent premium over the company's closing price of C$ 2.89 on Sept. 3.
Another factor that is different today than in the past is that many of the large western
Canadian lumber companies have been buying mills in the U.S..
Not exact matches
When Atlantic Canada's biggest
lumber company, J.D. Irving Ltd., was assessed a duty of only 3 per cent, the Chronicle Herald described the sanction as an «opportunity» for the
company to gain market share at the expense of its more heavily taxed
Canadian rivals.
The
company says North American
lumber demand remained strong in the last quarter with U.S. housing starts in line with a year earlier and
Canadian housing starts up 16 per cent from 2016.
Rather than giving American
companies an edge, they might just raise prices by 15 % or so, making their products just a little cheaper than
Canadian lumber while increasing their own profits.
An exemption from the countervailing duties for Atlantic
Canadian softwood
lumber producers would give them a competitive advantage relative to other forestry
companies in Canada, said Mason.
J.D. Irving's
lumber operations in New Brunswick — and its one mill in Truro — gained a competitive advantage over other
Canadian forestry
companies Tuesday as the United States imposed harsh countervailing duties on softwood
lumber imports.
Despite the U.S. Department of Commerce's decision to hit all other
Canadian producers with countervailing duties of 19.88 per cent starting this year, many industry insiders and political leaders are hopeful Atlantic
Canadian companies can be exempted from tariffs on softwood
lumber exports to the United States.
The
Canadian softwood
lumber industry and
Canadian energy
companies depend a lot on free trade with the United States.