KEY POINTS:
Carter Holt Harvey has agreed to buy the timber manufacturing and distribution businesses of Australia's Weyerhaeuser Australian Group.
The deal includes its interest in Green Triangle Forest Products Group in Victoria.
The potential transaction did not include any of the timberland assets owned in joint venture by Weyerhaeuser and Global Forest Partners.
It is subject to due diligence and clearance from the Australian Competition and Consumer Commission and Australia's Foresty Investment Review Board.
Carter Holt Harvey, a subsidiary of New Zealander Graeme Hart's Rank Group, said that last year it was approached by a party interested in acquiring its trans-Tasman building supplies business .
CHH said it then conducted a strategic review which included seeking expressions of interest from a number of parties in relation to all or part of the business.
During the review, the chance to acquire the Weyerhaeuser Australia businesses presented itself.
CHH believes combining the business with its own woodproducts Australia business "represents the best immediate strategic step in improving the combined business."
- NZPA
