Brazilian pulp and paper company Suzano Papel e Celulose SA has gotten the green light from China’s competition authority to acquire rival Fibria Celulose SA.
The new company will have an annual capacity of 11 million tonnes.
American competition authorities already signed off on the deal, which is valued at 36 billion reais ($9.61 billion) and would create the world’s biggest wood pulp producer..
The deal strengthens the Brazilians’ pricing power after years of surging capacity.
SUZANO PAPEL E CELULOSE is a Brazilian company of pulp and paper with a presence in over 80 countries. The company is a leader in the paperboard market in Latin America. It is among the 10 largest producers of market pulp and the largest producer of eucalyptus pulp in the world. Founded in 1924, the company is headquartered in Salvador, Brazil.
FIBRIA CELULOSE is a Brazilian pulp and paper company, created by a merger between Aracruz Celulose and Votorantim Celulose e Papel, born positioned as a global leader in pulp, with production capacity exceeding six million tons of pulp and paper produced in seven factories distributed in five Brazilian states. Founded in 2009, the company is headquartered in Sao Paulo, Brazil.