Louisiana-Pacific executives and their counterparts at Ainsworth Lumber have called off a $1.1 billion deal to have the Nashville-based company buy its Canadian rival.
News of the abandonment comes less than a week after the companies said U.S. and Canadian regulators had told them the purchase agreement would not meet with approval without major divestitures. At the time , LP CEO Curt Stevens said the companies were considering pushing ahead, which likely would result in regulators filing suit against them.
On Wednesday, LP and Ainsworth said approval was not going to happen "without divestitures significantly beyond those contemplated in the Arrangement Agreement [and] without engaging in lengthy and expensive litigation with the regulatory authorities in the US and Canada."
Shares of LP (Ticker: LPX ) slipped more than 2 percent in the hour before the news was announced but regained that ground soon after. At about 12:45 p.m., they were down 0.8 percent at $15.74. They're down 16 percent year to date and up