Brazil's antitrust watchdog, the Administrative Council for Economic Defense (CADE), has given the green light to Suzano's acquisition of Kimberly-Clark's local tissue assets.
The deal, worth $1.3 billion, will consolidate Suzano's position as the largest producer of tissue paper in Brazil.
The approval of the deal is a significant win for Suzano, which has been aggressively expanding its operations in recent years. The company is already the world's largest producer of eucalyptus pulp, a key raw material for tissue paper, and the acquisition of Kimberly-Clark's assets will strengthen its position in the tissue market.
According to Suzano's CEO, Walter Schalka, the acquisition will allow the company to better serve its customers and increase efficiency by integrating production and distribution operations. "We are excited to complete this transaction and begin delivering the benefits of this acquisition to our customers and shareholders," he said in a statement.
The deal is also a major development for Kimberly-Clark, which is divesting its Brazilian tissue business to focus on its core personal care and consumer tissue businesses. The company has been restructuring its operations in recent years to improve profitability and reduce costs.
In a statement, Kimberly-Clark's CEO, Mike Hsu, said the sale of the Brazilian tissue business would allow the company to focus on its "strategic priorities" and "unlock value for shareholders." He added that the company was committed to working with Suzano to ensure a smooth transition for employees and customers.
Overall, the Suzano-Kimberly-Clark deal is a significant development for Brazil's tissue market and the broader economy.