Resolute Announces Sale of Mersey Assets:
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that the province of Nova Scotia, represented by the minister of the Department of Economic and Rural Development and Tourism, has completed the purchase of all the shares of Bowater Mersey Paper Company Limited for nominal consideration.
Bowater Mersey is the former joint venture between Resolute (51%) and The Washington Post Company (49%), formed to hold the Mersey newsprint mill, located in Brooklyn, Nova Scotia, and other associated assets, including private timberlands, the Oakhill sawmill and Brooklyn Power Corporation. Resolute operated the Mersey newsprint mill until it was indefinitely idled in June of 2012.
Dave Coles, National President of the Communications, Energy and Paperworkers Union of Canada (CEP), said the announcement of the agreement with Resolute Forest Products and the Washington Post Company made by the Nova Scotia government is “great news for the forest industry”.
“This is extremely beneficial to retirees as it will have a very positive impact on the health of the pension plan for workers at the former Bowater mill,” said Coles.
