Mergers and acquisitions in the forest products industry

The study method for mergers and acquisitions (M&A) in the forest products industry was based on a literature review with some personal interviews. We found that over the last few years, M&A are occurring frequently in the fo rest products industry especially in the Pacific Northwest and the South. E lectric utility company lands that have been or will be sold to companies a nd to public agencies will be put to higher uses based on private or societ al economic value. We conclude that nationwide most sectors of the forest p roducts industry (except for sanitary paper, which appears to be concentrat ed) are competitive. Hence, in regard to potential M&A, nothing needs to be done beyond monitoring for market power, with the possible exception of sa nitary paper. Monopoly/monopsony (market power) in input markets was not ex plored and is difficult to check given our institutions. Furthermore, futur e research on spatial (locational/regional) patterns of M&A activities and company and industry reorganization, and the net benefits of M&A on the pro duct and factor markets need to be further investigated.