Wood suppliers are facing what some describe as “the worst market conditions they have ever seen,” the U.S. Lumber Coalition, a Washington-based lobbying group, wrote in a letter last month to Trump administration officials. Photo by DPProductions/Getty Images/Postmedia files

Rayonier Inc. agreed to buy PotlatchDeltic Corp. in an all-stock deal valued at about US$3.4 billion that would create the second-largest publicly traded timber and wood products company in North America.

Under terms of the deal, PotlatchDeltic holders will receive 1.7339 shares of Rayonier for each of their shares, the companies said in a statement Tuesday. That would imply a 7.8 per cent premium to PotlatchDeltic’s closing price.

PotlatchDeltic shares were up 4.6 per cent in premarket trading in New York

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