The $1.1-billion acquisition of Vancouver-based Ainsworth Lumber Co. appears to hit a wall with regulators. Louisiana-Pacific Corporation announced in September 2013 it was buying the B.C. company.
But Louisiana-Pacific CEO Curt Stevens announced in a May 8 earnings call that regulators have indicated they won’t allow the current transaction to proceed. “Therefore, to complete the transaction under its current terms, we may have to litigate with the regulators,” he said.
He added Louisiana-Pacific may have to amend the deal terms to include divestitures that “go beyond what was contemplated” when the original agreement was made. Stevens said there may also be changes to the purchase price and that the deal could even be terminated.
Louisiana-Pacific reported consolidated revenue of $445 million in the first quarter of 2014 while the net loss of operations amounted to $14 million.