MEMPHIS, TN -- The impending merger of International Paper Co.(NYSE: IP) and Temple-Inland (NSYE: TIN) has been postponed for nearly a month, giving the U.S. Department of Justice (DOJ) more time to conclude its regulatory review.
Both IP and Temple-Inland jointly announced that they had agreed with the DOJ to extend the review period for their pending merger until Jan. 27, 2012. The companies had originally agreed with the DOJ to conclude the merger on December 31. The companies also agreed to extend the outside date under their merger agreement from June 6 to June 28, 2012.
Temple-Inland shareholders voted to approve IP's offer, valued at $4.3 billion, on Dec. 7. IP had initiated a hostile takeover of Temple Inland in the spring.
Temple-Inland manufactures composite wood panels and building products at 16 U.S. facilities. The company also has seven container board mills and 63 converting facilities for manufacturing corrugated packaging. 2010 net income for the company was $168 million; of that, $22 million (EBITDA) was generated by the Building Products division.
IP Senior Vice President and General Counsel Sharon Ryan said, "We continue to cooperate with the Department of Justice and look forward to satisfying the closing conditions for the completion of this transaction."
Have something to say? Share your thoughts with us in the comments below.