EXHIBIT 99.1
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1 | Name and Address of Company |
Abitibi-Consolidated Inc. ("ACI")
and Abitibi-Consolidated Company of Canada
1155 Metcalfe Street
Suite 800
Montreal, Québec
H3B 5H2
Item 2 | Date of Material Change |
October 23, 2007
A press release was disseminated by CNW Telbec on October 23, 2007 from Montreal, Québec.
Item 4 | Summary of Material Change |
ACI and Bowater Incorporated ("Bowater") have reached an agreement with the United States Department of Justice that will allow the completion of the proposed combination of the two companies.
Item 5 | Full Description of Material Change |
| 5.1 | Full Description of Material Change |
On October 23, 2007, ACI and Bowater announced that they had reached an agreement with the United States Department of Justice that will allow the completion of the proposed combination of the two companies. Under the terms of the agreement, which was signed and filed on October 23, 2007 in the U.S. Federal District Court in Washington, D.C., the companies have agreed to divest one newsprint mill, ACI's mill in Snowflake, Arizona. The Snowflake mill has an annual capacity of approximately 375,000 tonnes. Scotia Capital Inc. will be engaged as exclusive financial advisor for the sale of the Snowflake mill and related assets.
The proposed combination has now received all necessary regulatory approvals, including those from the Canadian Competition Bureau, the Federal Minister of Industry under the Investment Canada Act, the Québec Superior Court and the U.S. Department of Justice, as well as the necessary approvals from shareholders of both ACI and Bowater. The combination is expected to close by the end of October, 2007, following the completion of certain administrative formalities.
| 5.2 | Disclosure for Restructuring Transactions |
N/A
Item 6 | Reliance on subsection 7.1(2) or (3) of National Instrument 51-102 |
This report is not being filed on a confidential basis.
Item 7 | Omitted Information |
N/A
Pierre Rougeau
Senior Vice-President, Corporate Development and Chief Financial Officer
(514) 875-2160
October 25, 2007
