Canadian company Paper Excellence plans to acquire US pulp and paper giant Domtar, with shareholders having overwhelmingly approved the proposed merger.

The merger of the companies raises concerns about the wide expansion of Paper Excellence in North America, which some believe threatens Canada's boreal forests.

The concerns raised by the expansion of Paper Excellence are compounded by the fact that the company's operations are effectively controlled by the Indonesian company Asia Pulp & Paper, which has a notoriously poor reputation regarding deforestation, forest and peatland fires, and human rights violations.

By acquiring Domtar, Paper Excellence will gain control over eight pulp and paper mills in the US and production and processing facilities installed and operating in 15 states.