(Reuters) - Canada’s Mercer International Inc MRIu.TO withdrew from its battle with AbitibiBowater Inc ABH.TO to buy Fibrek Inc FBK.TO after nearly three months of legal setbacks.
The exit clears the way for Abitibi’s C$1 a share offer, supported by Fibrek’s top shareholders such as Prem Watsa headed Fairfax Financial (FFH.TO). Abitibi operates under the name Resolute Forest Products.
Mercer will return the Fibrek shares that were tendered under its offer, it said in a statement.
Mercer, whose bid was 40 percent higher than Abitibi’s C$1 offer, was set to exit after Canada’s top court dismissed its appeal against a lower court ruling blocking a key term of its deal with Fibrek.
Mercer’s offer had the support of Fibrek management.
Shares of Fibrek were down 2 percent at 92 Canadian cents on Monday on the Toronto Stock Exchange.
Reporting by Aftab Ahmed in Bangalore; Editing by Sreejiraj Eluvangal