The OSB manufacturers released a joint statement saying they were mutually terminating the deal – first unveiled last September – because the necessary regulatory approvals could not be obtained without divesting significantly more of the business than originally contemplated in the agreement.

They said lengthy and expensive legal action with the regulatory authorities in the US and Canada would have been required. Had it gone ahead, the deal would have seen the world’s largest OSB manufacturer – LP – become even larger, encompassing 18 OSB mills in North and South America.

Ainsworth CEO Jim Lake said he was disappointed with the outcome but the company intended to continue to capitalise on the recovery in the US housing market.