An update on M&A activity in Brazil

By Hawkins Wright

Suzano’s deal to purchase Fibria continues to progress, with several important prerequisite conditions being met in recent weeks. Of note, the US Federal Trade Commission and the Chinese anti-trust authority have both approved the deal. Meanwhile Valor has reported that the Brazilian antitrust agency will make its final determination soon, with sources familiar with the organisation expecting approval to be granted without restrictions. In a separate development, the Brazilian Securities and Exchange Commission (CVM) has denied the request of a minority group of Fibria shareholders to postpone Fibria’s Extraordinary General Meeting to vote on the terms of the deal – to be hosted on September 13th. This constitutes an important milestone for the deal as some investors have been concerned that the CVM might query the structure of the proposed deal. Based upon these recent developments, the investment community expects the deal to close in Q1-2019.