Suzano Pulp and Paper has gained approval from the European Commission to merge with Brazilian eucalyptus pulp producer Fibria.
The combination of the two companies will be concluded on 14 January 2019.
The restructuring will create Brazil’s fourth most valuable company (excluding financial institutions).
Chief executive Walter Schalka said: “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.”
Once the corporate restructuring is concluded, the company will have a new brand, changing its name to Suzano.
Schalka will lead the company as chief executive.
Suzano will have an annual production capacity of 11 m tonnes of market pulp and 1.4 million tonnes of paper.
It will have 11 manufacturing units with the capacity to supply more than 90 countries and to ship exports worth R$26bn.
The transaction will be concluded in accordance with the plan announced on 16 March 2018 when the merger agreement was signed.
Marcelo Castelli – Fibria’s president and chief executive officer – will be the new global chief executive of Votorantim Cimentos after the conclusion of the Fibria and Suzano transaction, effective 1 February 2019.