The two companies first announced the agreement on Sept. 4, 2013. Under the agreement, Louisiana-Pacific would have acquired all outstanding shares of Ainsworth.
The two companies determined that regulatory approvals for the deal could not be obtained without significant divestitures beyond what they originally planned.
"We have no choice but to terminate the agreement rather than accept the distraction, disruption, costs and risk of litigating this matter in both the U.S. and Canada, where the process could take upwards of a year," Louisiana-Pacific CEO Curt Stevens said in a statement.
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TheStreet Ratings team rates LOUISIANA-PACIFIC CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LOUISIANA-PACIFIC CORP (LPX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."