Shareholders of Temple-Inland Inc. have approved the paper company’s merger with Memphis-based International Paper Co.
The approval came in a special meeting of the Austin, Texas-based company’s stockholders Wednesday, Dec. 7. Executives at the two companies inked the $4.3 billion deal in September.
The merger is awaiting regulatory approval from the U.S. Department of Justice.
IP executives in June made their first offer for the world’s third-largest corrugated-packaging maker. The Temple-Inland board rejected it and urged shareholders to reject it as well.
IP CEO John Faraci has likened the acquisition to IP’s purchase of the container board, packaging assets and recycling plants of another big name competitor, Weyerhauser, in 2008 for $6 billion.
“The big buckets are going to be logistics, supply chain, purchasing and overhead,” Faraci said in a September conference call with analysts. “We’re acquiring Temple not to have fewer facilities, but to make both companies better and stronger.”
IP anticipated lowering its freight costs in corrugated packaging with Temple-Inland’s acquisition through Temple’s set of mills and logistics apparatuses.
More than 98 percent of Temple’s shares were voted in favor of the merger.