Two of the world’s largest pulp producers set to combine.
The proposed merger of Brazilian pulp companies Fibria Celulose S.A. and Suzano Papel e Celulose S.A., has also received approval from the Chinese competition authority. The merger has been unconditionally approved in China, the companies informed their respective shareholders and the market at the end of August. The approval marks the crossing of yet another hurdle on the way to the announced mega-merger.
The US watchdog agency approved the deal some months ago. Approvals are still pending from Europe and the companies’ home country Brazil. Stiffer resistance to the merger might be encountered in Brazil where, as reported earlier, the two pulp and paper manufacturers International Paper and Royal Golden Eagle (RGE) group have submitted petitions to the competition authority to participate in the antitrust evaluation of the transaction. Also in Europe, industry insiders say there are objections from various quarters that fear negative consequences for the European market if two of the world’s largest hardwood pulp suppliers were to join forces.
Until the transaction is completed, the two companies will continue their normal business activities independently, the companies reiterated.