MEXICO - On December 19, Chile's Arauco and Masisa announced they had struck an agreement where Arauco buys Masisa's industrial assets in Mexico.

The operation means an investment of USD 245 million for Arauco and consolidates the company in North America in observance of the Company’s internationalization plans. As for Masisa, this operation is part of its announced disinvestment program. The sale of Masisa Mexico, plus the transactions already completed with the sale of the industrial operations of Masisa Argentina - acquired by Austrian Egger - and of Masisa Brazil, also purchased by Arauco, totalizes a disinvestment amount of approximately USD 503 million for Masisa.

Masisa's main assets in Mexico consisted of four industrial complexes located in Durango, Chihuahua, Zitácuaro and Lerma, which together have three PB lines with a total installed capacity of 519,000 m3 per year, an MDF line of with an installed capacity of 220,000 m3 per year, three lines of melamine coatings with a total installed capacity of 426,000 m3 per year and two chemical plants with a total capacity of 109,000 annual tons of resin and 82,600 annual tons of formaldehyde. “This action is part of our expansion plan that aims to position Arauco as a global company. With this acquisition, we will be extending our presence in the North American panel market, where we see trends of continued market growth for this type of product, focusing on residential and commercial furniture, and industrial markets”, said Matías Domeyko, Arauco Chief Executive Officer.

The operation should be completed in the next six month and is subject to a number of prior conditions that are customary for this type of agreement. One of the most important conditions is the authorization of Mexico's Federal Economic Competition Commission (COFECE).