Empresas Copec SA (COPEC), Chile’s biggest forestry company, erased a decline in Santiago trading after agreeing to a buy wood panel producer in North America.
Copec gained as much as 1.7 percent to 7,290 pesos, recovering from a 1.1 percent decline. The stock was trading at 7,200 pesos at 1:28 p.m. local time, up 0.4 percent.
Celulosa Arauco & Constitucion SA, Copec’s pulp and forestry unit, agreed to pay $243 million for all shares in Flakeboard Co., the Canadian producer of fiberboard and particleboard used to build furniture and countertops, according to a statement on the website of Chile’s securities regulator.
“Once the acquisition is finalized, Arauco will be able to produce as much as 2.9 million cubic meters of panels a year in North America,” according to the statement. “The transaction is estimated to have a positive effect on Arauco results,” the company said, without elaborating.
The transaction may proceed in the second half of the year after regulatory approvals, Arauco said. Flakeboard operates two plants in Canada and five in the U.S.
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