MONTREAL, QC, and GREENVILLE, SC, Oct. 29 /CNW Telbec/ - AbitibiBowater
Inc. (NYSE: ABH, TSX: ABH) announces that it has completed its previously
publicized merger of equals of Abitibi-Consolidated Inc. and Bowater
Incorporated. With pro forma revenues of approximately US$8 billion in 2006,
AbitibiBowater is the third largest publicly traded paper and forest products
company in North America and the eighth largest in the world.
Commencing today, the common stock of AbitibiBowater will trade on the
New York Stock Exchange and Toronto Stock Exchange under the ticker symbol
"ABH". AbitibiBowater is a U.S. reporting company, reporting in U.S. GAAP,
with headquarters and executive offices located in Montréal, Québec.
The Company expects to achieve annualized synergies of at least
US$250 million within two years from improved efficiencies in such areas as
production, selling, general and administrative (SG&A) costs, distribution and
According to John W. Weaver, Executive Chairman of AbitibiBowater, "By
combining Abitibi-Consolidated and Bowater, we have created a global leader
that is well positioned to compete in an increasingly challenging global
market. We look forward to drawing on the best practices from both
organizations and on the strengths of a proven management team to deliver
greater value to our stockholders, customers, employees and other
"This transaction marks a new and important chapter in our collective
history," said David J. Paterson, President and Chief Executive Officer of
AbitibiBowater. "Through this combination, AbitibiBowater will be a more
dynamic and competitive organization that will create long-term value for our
stockholders and the communities in which we operate. Our plan to achieve
US$250 million in annual synergies is just the first step toward this goal."
As previously announced and as part of the closing of the combination of
Abitibi-Consolidated and Bowater to form AbitibiBowater, Bowater Canada Inc.,
an exchangeable share public company subsidiary of Bowater, amended its
articles in order to, among other matters, change its name to AbitibiBowater
Canada Inc. and change each of its issued and outstanding exchangeable shares
for 0.52 of a new exchangeable share. The exchangeable shares, which
previously traded on the Toronto Stock Exchange under the symbol "BWX", are
now traded on the Toronto Stock Exchange on a post-consolidation basis under
the symbol "AXB" and are exchangeable on a one-for-one basis for shares of
AbitibiBowater common stock.
Abitibi-Consolidated and Bowater also announced that each company will
release their respective third quarter 2007 results before the markets open on
Tuesday, November 6, 2007. Further information regarding the companies'
earnings calls for analysts, and the manner in which the calls may be
accessed, will be made available shortly.
AbitibiBowater produces a wide range of newsprint and commercial printing
papers, market pulp and wood products. Following the required divestiture
agreed to with the U.S. Department of Justice, AbitibiBowater will own or
operate 31 pulp and paper facilities and 35 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea. Marketing
its products in more than 80 countries, the Company is among the world's
largest recyclers of newspapers and magazines, and has more third-party
certified sustainable forest land than any other company in the world.
Any statements made regarding the combination between
Abitibi-Consolidated Inc. and Bowater Incorporated, benefits or synergies of
the combination, and other statements contained in this news release that are
not historical fact are forward-looking statements that are based on
management's beliefs, certain assumptions and current expectations. These
statements may be identified by the use of forward-looking terminology such as
the words "expects," "projects," "intends," "believes," "anticipates", "will"
and other terms with similar meaning indicating possible future events or
actions or potential impact on the business or stockholders of AbitibiBowater
Inc. Such statements include, but are not limited to, statements about future
financial and operating results, AbitibiBowater's plans, objectives,
expectations and intentions, the markets for AbitibiBowater's products, the
future development of AbitibiBowater's business, and the contingencies and
uncertainties to which AbitibiBowater may be subject and other statements that
are not historical facts. This news release also includes information that has
not been reviewed by the company's independent auditors. All forward-looking
statements in this news release are expressly qualified by information
contained in filings with regulatory authorities.
The following factors, among others, could cause actual results to differ
materially from those set forth in the forward-looking statements: the risk
that Abitibi-Consolidated's and Bowater's businesses will not be integrated
successfully; the risk that the cost savings and other expected synergies from
the combination may not be fully realized or may take longer to realize than
expected; and disruption from the combination making it more difficult to
maintain relationships with customers, employees or suppliers. Additional
factors that could cause AbitibiBowater's results to differ materially from
those described in the forward-looking statements can be found in the periodic
reports filed by AbitibiBowater with the SEC and the Canadian securities
regulatory authorities and available at the SEC's internet site
(http://www.sec.gov) and on SEDAR (http://www.sedar.com). AbitibiBowater does
not undertake and specifically disclaims, any obligation to update or revise
any forward-looking information, whether as a result of new information,
future developments or otherwise.
/NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
the CNW Photo Network and archived at http://photos.newswire.ca.
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website at http://photos.newswire.ca. Images are free to accredited
members of the media/
For further information:
For further information: Investors: Duane A. Owens, Vice President and
Treasurer, (864) 282-9488; Media: Seth Kursman Vice President, Communications
and Government Affairs, (514) 394-2398, firstname.lastname@example.org