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- Date:
6/5/2024
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The internet is rife again with speculations on a possible take-over of International Paper by Brazilian pulp giant Suzano.
After the rumours surfaced in May and caused "atypical fluctuation" in Suzano securities on the Bolsa do Brazil (B3), Suzano confirmed its interest in International Paper assets in a statement on 22 May.
The company added: "Up to the moment, there is no agreement, binding or otherwise, nor any decision or deliberation by the company's management regarding a potential operation that meets the minimum materiality required to qualify as a material fact."
According to a Reuters report from 22 May, Suzano was in talks with advisers about an offer for IP worth $15bn. However, the deal would be conditioned on IP abandoning its recently announced agreement to acquire DS Smith.
Bloomberg reported on 23 May that Suzano was in talks with Asian Banks to fund the IP deal and on 3 June that the company was working on a revised offer for IP.
The deal would produce a strongly integrated global pulp and paper company with sales revenues of $26.6bn (Suzano: $7.7bn, IP: $18.9bn).
Suzano can produce more than 11 million t of pulp, 1.3 million t of paper and board and 300.000 t of tissue paper.
IP's pulp capacities exceed 2.7 million t, while paper and board capacities amount to nearly 16 million t. In 2023, the company bought 43 million t of forest-based fibre.
Source:https://www.euwid-paper.com/