Norbord to be acquired by West Fraser in a stock deal valued at more than $3 billion

West Fraser Timber Co. Ltd. /zigman2/quotes/202351311/delayed CA:WFT +3.05% announced Thursday a agreement to buy Canada-based oriented strand board (OSB) producer Norbord Inc. /zigman2/quotes/209286756/composite OSB +4.56% /zigman2/quotes/209239198/delayed CA:OSB +3.68% in a stock deal valued at C$4 billion ($3.1 billion). Under terms of the deal, Norbord shareholders will receive 0.675 of a West Fraser share for each Norbord share they own. Based on Wednesday's closing prices, that values Norbord shares at C$49.35 ($37.78), a 13.6% premium. Norbord's U.S.-listed stock was up 2.4% in premarket trading, prior to a trading halt for news. The deal is expected to close in the first quarter of 2021. Norbord's stock has rallied 24.2% year to date through Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.39% has gained 10.4%.

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West Fraser Timber Co. Ltd.

CA : Canada: Toronto

$ 78.83

+2.33 +3.05%

Volume: 901,498

Jan. 20, 2021 5:40p

P/E Ratio

15.56

Dividend Yield

1.01%

Market Cap

$5.25 billion

Rev. per Employee

$594,756

/zigman2/quotes/209286756/composite

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Norbord Inc.

US : U.S.: NYSE

$ 42.22

+1.84 +4.56%

Volume: 162,765

Jan. 20, 2021 4:10p

P/E Ratio

14.93

Dividend Yield

2.08%

Market Cap

$3.26 billion

Rev. per Employee

$721,250

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Norbord Inc.

CA : Canada: Toronto

$ 53.29

+1.89 +3.68%

Volume: 222,525

Jan. 20, 2021 5:40p

P/E Ratio

14.08

Dividend Yield

2.16%

Market Cap

$4.15 billion

Rev. per Employee

$957,025

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S&P 500 Index

US : S&P US

3,851.85

+52.94 +1.39%

Volume: 2.34B

Jan. 20, 2021 4:58p