Two giants of the forestry industry will merge and create the largest timberland owner in the U.S. in order to capitalize on the rebounding housing market, according to Global Post.
Weyerhaeuser’s acquisition of Plum Creek Timber, announced late Monday, means the entity would control 5.3 million hectares of land valued at $23 billion.
“These two companies are already best-in-class timberland managers with a relentless focus on sustainable resource management,” Plum Creek chief executive Rick Holley told Global Post.
The economies of scale created by the merger will allow the company to profit from the U.S. housing recovery and the combine entity should generate more than $100 million in revenue than either company would have alone in the first half of next year, according to Barrons.
