West Fraser Timber Co. Ltd. (TSX:WFG) entered into an agreement to acquire the remaining 50% stake in Cariboo Pulp and Paper Company Limited from Mercer Peace River Pulp Ltd. on April 2, 2024. Prior to the transaction, West Fraser Timber Co.

Ltd. (TSX:WFG) held 50% stake in Cariboo Pulp and Paper and it was a joint venture. Upon completion of the deal, the joint venture would be dissolved and West Fraser will continue as the sole owner/operator of the mill , doing business as Cariboo Pulp and Paper Company. No termination or other amounts are payable by either party in connection with the termination of the joint venture.

Mercer will retain certain finished product inventory in connection with the transaction. Mercer expects to recognize a non-cash impairment in the first quarter in connection with the dissolution of the joint venture, based on the net carrying value of such interest.