Brazilian pulp producer Suzano Papel e Celulose has acquired Brazilian eucalyptus pulp producer Fibria in a deal worth BRL36 billion.
The move has created a pulp giant with a 17% share of the global market of pulp producers.
With existing assets in Brazil and world-wide, the company now has 37,000 employees and contractors.
Its 11 industrial units will annually produce 11 million tonnes of market pulp and 1.4 million tonnes of paper.
Fibria is controlled by Brazil’s development bank BNDES, which has 29.1% of the company as well as 6.9% of Suzano. Brazilian conglomerate Votorantim has a 29.4% share of Fibria.
When asked how this will impact the tissue market, Suzano chief executive Walter Schalka told TWM: “Brazil is already a global reference in competitiveness and development of new technologies for the production of eucalyptus pulp.
“The combination of Suzano and Fibria will create a company even more prepared to offer better products and services to the customers, besides all the investments that it will be necessary to meet all the industry demands.”