Resolute Forest Products shareholders have agreed to the merger deal with Paper Excellence through its subsidiary Domtar.

The proposal received nearly 100 per cent approval from the over 80 per cent of eligible shareholders that took part in the special vote Monday.

The deal still needs other regulatory approvals.

Under the agreement, Resolute will continue to operate under its name.

It is retaining its sawmills in Ignace and Atikokan.

Due to anticipated regulatory requirements following the sale, plans are being made to sell the Dryden, Thunder Bay and Espanola operations to a third party.

The sale is expected to be completed in the first quarter of 2023.

—With files from Mike Ebbeling