Mergers and acquisitions in the forest products industry

The study method for mergers and acquisitions (M&A) in the forest products industry was based on a literature review with some personal interviews. We found that over the last few years, M&A are occurring frequently in the forest products industry especially in the Pacific Northwest and the South. Electric utility company lands that have been or will be sold to companies and to public agencies will be put to higher uses based on private or societal economic value. We conclude that nationwide most sectors of the forest products industry (except for sanitary paper, which appears to be concentrated) are competitive. Hence, in regard to potential M&A, nothing needs to be done beyond monitoring for market power, with the possible exception of sanitary paper. Monopoly/monopsony (market power) in input markets was not explored and is difficult to check given our institutions. Furthermore, future research on spatial (locational/regional) patterns of M&A activities and company and industry reorganization, and the net benefits of M&A on the product and factor markets need to be further investigated.