Suzano Pulp and Paper has obtained regulatory approval from the European Commission to conclude the combination of operations and shareholder bases with Fibria, as the company said in the press release received by Lesprom Network.
With reviews by all required antitrust agencies duly completed, the companies can now proceed with the consummation of the transaction. The corporate restructuring, which will be concluded on January 14, 2019, will create Brazil’s fourth most valuable company (excluding financial institutions).
“We are about to transform a dream into reality and set a true milestone for Brazil. We will combine the best operational and sustainability practices of the two companies, the best professionals and the most important innovation projects in renewable resources,” said CEO Walter Schalka.
Once the corporate restructuring is concluded, the company will have a new brand, changing its name to Suzano. Walter Schalka will lead the company as CEO.
Suzano will have an annual production capacity of 11 million tons of market pulp and 1.4 million tons of paper. The company will have approximately 37,000 direct and indirect employees and 11 manufacturing units with the capacity to supply more than 90 countries and to ship exports worth R$26 billion, based on exports in the 12 months to September 30, 2018. From January to September this year, the two companies reported operating cash flow of R$10.1 billion and consolidated net revenue of R$24.5 billion. Together they already have invested R$4.9 billion in the first nine months of the year.
All other conditions precedent for the merger of Suzano and Fibria have been fulfilled.
