One of Western Canada’s largest paper producers is bidding for East Coast rival Domtar, the latest sign of consolidation in the booming forest products industry. Domtar disclosed it is in takeover talks with Paper Excellence, a deal that could be worth more than US$3-billion. The potential transaction would create one of the world’s largest pulp and paper companies. …Benoit Laprade of Scotia Capital said: “The company is in play, and therefore any potential buyer now has the opportunity to react.” …Paper Excellence is bidding for Domtar at a time when pulp prices are rising and analysts predict the sector will consolidate around its strongest players. …In a recent report, Paul Quinn of RBC Capital Markets highlighted two rival U.S. paper companies – Packaging Corp. of America and Westrock – as potential buyers of Domtar. …Domtar owns seven paper mills and six pulp facilities. …Paper Excellence has eight Canadian facilities. [We respect the copyrights of the source publication – full access may require a subscription]