MONTREAL, Jan. 9 - Domtar Inc. announced today that Canada's Competition Bureau has decided not to challenge the closing of the proposed combination of Domtar with Weyerhaeuser's fine paper and related businesses. The United States Department of Justice made a similar decision on the transaction in October 2006 under the Hart-Scott-Rodino review process. "We are very pleased with these decisions from the Canadian and U.S. authorities," said Raymond Royer, Domtar's President and Chief Executive Officer. "This was an essential condition for the transaction. This major step towards closing now enables us to seek approval from our shareholders and start developing a plan to better meet the needs of customers across North America in a competitive marketplace," added Mr. Royer. Other closing conditions include approvals from Investment Canada and from Domtar shareholders at a special meeting to be held in February. The transaction is expected to close in the first quarter of 2007.