MEMPHIS (AP) – International Paper Co. said Monday, Dec. 19, that it reached a deal with the U.S. Department of Justice to extend the regulatory review period for its pending $3.7 billion acquisition of smaller rival Temple-Inland Inc. until Jan. 27.
The companies had previously agreed to not let the acquisition go through before Dec. 31. In addition, the pair agreed to extend the deal's outside date by 22 days to June 28.
Memphis, Tenn.-based International Paper agreed in September to acquire Austin, Texas-based Temple-Inland for $32 per share. Shareholders of Temple-Inland voted in favor of the acquisition earlier in the month.
The deal will give the combined company about 40 percent of the corrugated packaging materials market in North America. International Paper is the largest producer of corrugated packaging in North America, while Temple-Inland is the third-largest.
International Paper officials said they continue to cooperate with the Justice Department and look forward to satisfying the conditions for closing the deal.
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