Skip to main content

A truck loaded with rolls of newly produced paper.

Damian Dovarganes/Damian Dovarganes/AP

Mercer International Inc. has abandoned its battle with AbitibiBowater Inc. for control of pulp maker Fibrek Inc.

Mercer said Monday it is withdrawing its offer for Fibrek and will return the Fibrek shares that were tendered to the bid.

The decision marks the end of almost three months of legal setbacks for Mercer in its the drawn-out fight for Fibrek, whose largest shareholder is Prem Watsa's Fairfax Financial Holdings Ltd.

Story continues below advertisement

The takeover battle between Mercer and AbitiBowater – now known as Resolute Forest Products – has been played out against a backdrop of rising prospects for pulp exports to China.

Fibrek decided to throw in the towel after the Supreme Court of Canada declined to hear an appeal it filed asking the top court to rule on the defence it has used to fend off Resolute's hostile takeover bid.

Mercer's bid, which was 40 cents higher than Resolute's $1.00-per-share offer, had the backing of Fibrek's board.

The Fibrek board has also adopted a poison pill that would allow shareholders to benefit from Mercer's higher offer.

Fibrek operates three mills with a combined capacity to produce close to 800,000 tonnes a year.

Resolute, which already owns 45.74 per cent of Fibrek's shares, has the support of Fairfax.

Report an error Licensing Options
About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.