Moody's Investors Service, ("Moody's") says that West Fraser Timber Co. Ltd. (West Fraser, Baa3 negative) announcement yesterday that it has signed an agreement to acquire Norbord Inc. (Norbord, Ba1 stable), the world's largest oriented strand board (OSB) producer, in a stock-for-stock transaction valued at approximately $3.1 billion is credit positive. The deal is credit positive because Norbord's panel business will significantly improve West Fraser's scale, geographic and operational diversity and broaden its product offering. Additionally, Norbord's low cost facilities and expected synergies will improve West Fraser's consolidated EBITDA margins, while lessening West Fraser's relative exposure to British Columbia's high cost and uncertain fiber basket.