United States forest investor Hancock Timber Resource Group has bought out rival Prudential Timber Investments, including 60,734ha of forests in New Zealand, in a deal worth about US$660 million ($973 million).
Hancock said the transaction -- expected to be completed by the end of this year's third quarter -- would
bring its total forest holdings to approximately 1.01 million hectares worth about $3.1 billion.
Boston-based Prudential Timber acquired its New Zealand assets in the 2003 $725 million sell off of 106,000ha of Fletcher Challenge Forests (FCF) timber lands.
The estate was sold to a consortium led by Kiwi Forests Group which included Prudential Timber-owned Viking Global New Zealand Ltd and a New Zealand subsidiary of The Ontario Teachers' Pension Plan.
Hancock's purchase of Prudential's approximately 182,200ha around the world includes nearly 95,150ha in the Southern US, more than 8098ha in Hawaii and nearly 18,220ha in Brazil.
Hancock president Dan Christensen said his group regarded the purchase as a significant step forward that would provide additional economies of scale which would ultimately benefit its investors.
"In addition, we strengthen our property portfolio, increasing our acreage in the Southern United States, more than doubling our acreage in New Zealand and adding new acreage in South America."
Forest Industries Council chief executive Stephen Jacobi told NZPA the deal was significant but would make little difference to the way the New Zealand forests were managed on the ground.
The forests are currently managed by PF Olsen.
- NZPA
