Trump’s Tariffs Just Fueled a SHOCKING $8.2B Merger to "Quietly Corner" America’s Wood Supply

Rayonier and PotlachDeltic just put the “wood” in Barry Wood…

Rayonier and PotlatchDeltic are merging in an all-stock deal worth $8.2 billion, creating the second-largest publicly traded timber and wood products company in North America… a phrase that sounds less sexy than it is lucrative. The combined giant will control 4.2 million acres of timberland across 11 U.S. states and seven manufacturing plants. Rayonier shareholders get 54%, PotlatchDeltic gets 46%, and together they form one big lumber cartel headquartered in Atlanta.

(Source: Giphy) 

The deal hits as the Trump administration kneecaps imported timber and lumber with 10% tariffs… a classic pro-business move that CEOs are openly thrilled about. Rayonier CEO Mark McHugh, who will lead the new company, said tariffs are a net win for U.S. producers. Translation: “We like capitalism, but only when it’s heavily subsidized and mildly nationalistic.” 

(Source: Reuters) 

Additionally, PotlatchDeltic’s Eric Cremers, who’ll serve as executive chair for two years, insists housing will recover once inflation and rates cool. “There are better times ahead,” he said, presumably staring longingly at a 30-year mortgage chart. Both execs are betting that demand for construction materials will bounce as tariffs force builders back to domestic suppliers. Which means, combined, the new firm will sit just behind Weyerhaeuser (WY) in scale. 

RBC, however, wasn’t as thrilled as they called the merger “moderately positive”. Booo. As for investors, the deal values PotlatchDeltic at $44.11 per share…an 8.25% premium over pre-merger prices…and is expected to close by mid-2026. Which honestly, isn’t that “crazy” considering an 8.25% move is something we see every dang morning on the Stock Prophet Watchlist. 

(Source: Giphy) 

But alas, Wall Street might’ve shrugged, but the South just got a little more vertical. The lumber oligarchy lives, and it’s quietly cornering the raw material that keeps America standing, building, and occasionally burning. So with that, do what you will with this information and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.