Two major woodlands companies, Potlatch and Deltic Timber, are combining in a stock deal that will leave Potlatch shareholders with 65 percent control of the new company, which will be organized as a real estate investment trust. Deltic shareholders will get 1.8 shares of Potlatch for each Deltic share, making the deal worth about $1.18 billion.

Both companies had been looking for ways to improve their conditions. Potlatch struggled with volatility in the lumber business. Deltic was being pressured by a shareholder to increase value.

Deltic was founded by Charles Murphy, the oil company leader. Its investments include mills, about a half-million acres of timberland and real estate development projects, notably the Chenal Properties development in western Little Rock. As yet, none of the news coverage of the combination suggests any changes for that portion of Deltic’s business.

Potlach’s current CEO, Mike Covey, will lead the renamed PotlatchDeltic Corporation.