By now, you've probably read Bloomberg's breaking news about Suzano targeting Clearwater for acquisition.
With Clearwater shares down 55% from July to last Thursday and a grade mix that fits Suzano's strategy, it could be a smart move.
Instead of focusing on this potential deal, let's look at a broader strategic view of the industry in light of this move and the developments of 2024.
IP&DS Smith and Smurfit WestRock are managing their own merger developments.
KC is reshaping its business by selling paper assets globally and investing in diapers, while P&G remains uninterested in traditional pulp and paper mills.
All major players in Latin America are either developing new billion-dollar pulp projects or going through debt reduction phases.
UPM's strategy is well-established, with its energy business performing robustly. Stora Enso is reducing debts through asset sales.
Business relations between the West and East are in a "pause-and-see" phase, so they are not a focus here.
So here it comes: Suzano and G-P are the players capable of leading the next round of consolidations in the USA.
While Suzano has the additional motivation of avoiding tariffs from the new US government by having more mills on US soil, Koch Brothers (G-P’s owners) are stronger and traditional Trump’s supporters and can benefit from it.
