DEAL PLANTS MORE TREES

AUSTRALIAN forestry company Midway has unveiled a $350m deal with MEAG, a subsidiary of insurance giant Munich Re, which will see the pair dramatically expand Midway’s forestry operations.

The transaction is one of the first to capitalise on a recent update to Australia’s Emissions Reduction Fund method of dealing with plantation forestry, which will provide more opportunities for the industry to earn carbon credits.

The transaction involves a $154.1m payment for Midway’s 17,000ha plantation in Victoria, and $200m to be invested in new hardwood plantations in the region over the next five years.

A Midway spokesman said a major drawcard for the German-based buyer was Australia’s scheme that incentivised removing carbon from the atmosphere.