Yahoo Finance Brazil’s Suzano no longer pursuing bid for International Paper- Bloomberg
Investing.com-- Brazilian pulp manufacturer Suzano Papel e Celulose (NYSE:SUZ) will no longer pursue a bid for International Paper (NYSE:IP), after the U.S.-based paper maker cleared a major regulatory hurdle for a merger with UK-based DS Smith PLC (LON:SMDS), Bloomberg reported on Wednesday.
The Bloomberg report quells earlier speculation that Suzano was considering a rival, $15 billion offer for IP, after the paper maker agreed to a $7.2 billion all-share deal with DS Smith. The Smith offer had just edged out a rival offer by Mondi PLC (LON:MNDI).
IP had agreed to the Smith offer in April. But the two companies had to engage in a waiting period to comply with U.S. regulations. The period ended this week, the companies said in a statement on Wednesday, and the merger is set to become effective in the fourth quarter of 2024.
IP is the world’s largest pulp and paper manufacturer. But the firm has faced sluggish market conditions in recent years, amid a broader push into digitization, as well as concerns over the environmental impact of paper manufacturing.
But the merger with DS Smith is expected to help the firm expand its international presence. The merger could also see some potential cost-cutting measures.
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