TOKYO (From news reports) -- Japan Pulp and Paper, the country's largest paper trading house, will acquire Oceanian peers. The move is in response to a shrinking domestic paper market due to falling population and other factors.
The company aims to boost revenues in Australia and New Zealand, where immigration policies have helped populations grow. It plans to integrate operations of Auckland-based PagePack -- Oceania's largest paper merchant and known for its BJ Ball brand -- with Melbourne-based K.W.Doggett, the region's third largest.
The merger may come as soon as July.
Japan Pulp and Paper will then acquire a 51% stake in the merged company from funds and other investors. The acquisition is estimated at nearly 7 billion yen ($63.9 million).
The company also plans to acquire the remaining 49% over the next few years, which could swell acquisition costs to nearly 20 billion yen.