US-based private timberland owner Weyerhaeuser will be seeking strategic alternatives for its cellulose fibres business, which produces liquid packaging board, and absorbent and papergrade pulp.

The firm intends to explore multiple options for its business, which will either involve selling or spinning-off the unit or continuing to hold and operate it.

Currently under consideration, the business unit includes five operating pulp mills, two modified fibre mills, one liquid packaging board facility, and one publishing paper joint-venture facility.

"We believe now is the right time to evaluate all options to ensure the best long-term results for this business."

Weyerhaeuser president and CEO Doyle R Simons said: "We have consistently improved the performance of this business while continuing to meet the needs of our worldwide customers.

"We believe now is the right time to evaluate all options to ensure the best long-term results for this business and at the same time, create the most value for our shareholders by further focusing our portfolio."

However, the firm is only currently looking at evaluation.

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Weyerhaeuser said this might or might not result in any transaction, and even if a transaction is pursued, it might not lead to consummation.

The firm has also reached a definitive merger agreement with Plum Creek, which will lead to the creation of a joint company with an anticipated equity value of $23bn.

While Weyerhaeuser will be a majority owner of the combined entity with a 65% stake, Plum Creek and Plum Creek will own the remaining 35% share.