Brazil's largest pulp producers, Suzano Papel E Celulose S.A. and Fibria Cellulose announced, the controlling shareholders of Suzano Holding S.A. and Fibria Celulose S.A. have agreed to a merger of the two companies.

Wood Pulp

Suzano and Fibria to merge

Brazil's largest pulp producers, Suzano Papel E Celulose S.A. and Fibria Cellulose announced, the controlling shareholders of Suzano Holding S.A. and Fibria Celulose S.A. have agreed to a merger of the two companies.

Under the proposed terms of the deal: Suzano being entitled to the total share capital of Fibria; and Fibria's shareholders receiving, in exchange for each common share of Fibria the amount of R$ 52,50 (fifty two Brazilian reais and fifty cents), adjusted by CDI from March 15, 2018 up until the effective payment date, to be paid in one installment on the closing date of the transaction; and 0,4611 common share issued by Suzano to be delivered on the closing date of the deal.

The closing of the transaction is subject to certain conditions typical to transactions of this nature, including the approval by antitrust authorities in Brazil and in other jurisdictions.

Fibria is the world leader in eucalyptus pulp production with an annual pulp production capacity of 7.25 million tons.

Suzano is the second largest eucalyptus pulp producer and the fifth largest market pulp producer in the world.