The leaders of Louisiana-Pacific and Ainsworth Lumber have agreed to extend to June 2 today's deadline to obtain regulatory approval of their planned $1.1 billion combination. The companies say their extension is the result of "continued discussions" with the Canadian Competition Bureau and the Antitrust Division of the U.S. Department of Justice. Either company can add another 45 days to the deal's timeline if needed.
Shares of LP (Ticker: LPX) are down about 1 percent this afternoon to $15.25. Investors appear to be expecting not-so-good news about the Ainsworth acquisition and have pushed the stock down nearly 20 percent since the beginning of March.
Louisiana-Pacific has recruited a 26-year veteran of the forest products sector to be its regional operations manager in Canada, where the company will grow its presence from five to nine plants when it wraps up its $1.1 billion purchase of Ainsworth Lumber. Mac Palmiere had until this summer run Howe Sound Pulp and Paper in British Columbia and will continue to be based in Vancouver.
Bill McConnell at TheStreet.com writes about the apparent greater likelihood that Louisiana-Pacific will be asked by the Federal Trade Commission to divest some of the manufacturing capacity it will have after it buys Canadian rival Ainsworth. It will likely come down to how the FTC's staff looks at the proposed combination's effects on Western Canadian production.
A key factor in the antitrust review is how broadly the regulators view the affected market. A broader view that geographically includes all of North America and includes both plywood and oriented strandboard (OSB) would make an extended review unlikely. If the DOJ limits the market to a smaller geographic area like the U.S. Pacific Northwest and considers the merger's impact only on OSB, then the likelihood of a long review and divestitures rises substantially.
SEE ALSO: LP buying Canadian competitor for $1.1B
Lincor Solutions, the marketer of various hospital-based technology solutions, has won a 10-year contract to supply its bedside patient terminals with phone, TV and Internet access to a trio of Newfoundland hospitals. Operator Eastern Health will begin phasing in the terminals, which also have patient medical records applications, starting next week.
Lincor earlier this year moved its HQ from Ireland to Brentwood and has since added a number of senior executives to its area ranks.
Local cleaning chemicals company Kyzen has signed on a second distributor for Canada, tapping Comtree to handle the western part of our northern neighbor as well as areas outside Toronto. Kyzen will continue to ask CCR International, with which it first teamed up in 2005, to market its products elsewhere in Canada.
POSTDATA: WARRANTY DEEDS