Weston Forest, a Canadian lumber and plywood giant, recently announced that it had been acquired by Watermill Group, an American firm, for an undisclosed sum.

Founded in 1953, Weston Forest is now an important supplier of raw materials to both the industrial and construction industries, with major markets in Canada and the United States.

Steve Rhone, chairman of Weston Forest, said: “This is an historic event for us and we believe that Watermill Group’s strategic and financial strength will help the company even more. ”

Watermill Goup said Weston Forest has performed well and that the acquisition of the timber company is expected to significantly strengthen Watermill Goup's overall strength.

The outside world generally believes that this acquisition is of great benefit to both parties. Although Weston Forest has been deeply involved in the wood and plywood industry for many years, it is restricted to its Canadian identity. It has been sanctioned by the United States in its repeated timber disputes between the United States and Canada, which has affected the company's performance.

In order to solve this problem, Weston Forest tried to purchase forest land and finished wood in the United States, and supply the American market after processing. But this plan did not completely eliminate the impact of tariffs.

Weston Forest still has a large area of forest land in Canada, and its log and plywood market has a larger share in the United States. And Canada's natural advantages mean that logs and plywood produced in Canada are more cost-effective. For Weston Forest, it is not a cost-effective thing to abandon the Canadian origin and place in the United States.

Weston Forest was acquired by an American company and changed into an American identity, which, to a certain extent, could solve the hostility of the American timber industry to Weston Forest.

For the Canadian timber industry, although the United States has reduced the tax rate imposed on Canadian timber due to the WTO's decision, Canadian timber companies still face relatively high tax rates.

If Canadian timber companies cannot further reduce the hostility of Americans for the time being, it is a good way to get more Canadian timber into the United States by being acquired by American companies and saving the country through a curve. At least, putting on the coat of the United States and importing wood from Canada may not be so eye-catching in the eyes of Americans.