Jul 26, 2007. /Lesprom Network/. Abitibi-Consolidated Inc. and Bowater Incorporated announced on July 25, 2007 that the federal minister of industry, under the Investment Canada Act, has approved the proposed combination of Abitibi-Consolidated and Bowater. This announcement follows yesterday's positive developments with the decision by the Canadian Competition Bureau to allow the combination to proceed. This effectively completes the review by Canadian regulatory authorities. In connection with the review and approval of the transaction under the Investment Canada Act, AbitibiBowater Inc. agreed among other things, for a period of three years after closing, to maintain its headquarters in Montreal, Canada; to maintain at least five Canadians on its board of directors; and to apply for listing of its common stock on the Toronto Stock Exchange. The transaction is expected to close in the third quarter of 2007. The combined company, which will be called AbitibiBowater Inc. will produce a wide-range of newsprint, commercial printing papers, market pulp and wood products. It will be the eighth largest pulp and paper manufacturer in the world. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. It will also be among the world's largest recyclers of newspapers and magazines, and a global leader in sustainable forest management through independent third-party certification. Abitibi-Consolidated is a global leader in newsprint and commercial printing papers as well as a major producer of wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is among the largest recyclers of newspapers and magazines in North America, diverting annually approximately 1.7 million tonnes of waste paper from landfills. Bowater Incorporated is a leading producer of coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater has 12 pulp and paper mills in the United States, Canada and South Korea. In North America, it also operates one converting facility and owns 10 sawmills. Bowater's operations are supported by approximately 708 000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates six recycling plants and is one of the world's largest consumers of recycled newspapers and magazines.