On June 26th, Suzano, the world’s leading producer of market pulp, announced its decision to withdraw from acquiring the assets of International Paper (IP) after several negotiation attempts were unsuccessful. IP had rejected the multi-billion-dollar offer from Suzano.
“After some discussions with International Paper Company regarding a potential transaction between the companies, Suzano reached what it believes to be the maximum price for the transaction to generate value for Suzano, without engagement from the other party. Therefore, in adherence to its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper”, the company stated in its announcement.
In May, Suzano’s proposal was valued at $15 billion and included a condition that IP cancel a purchase agreement with British competitor DS Smith, valued at approximately $9.9 billion.
According to Marcelo Bacci, Suzano’s chief financial officer and investor relations officer, “It has always been a condition for Suzano that there be engagement between the parties on private, confidential, and friendly terms for this transaction to be completed. Since it was not possible to advance in this manner, Suzano chose to terminate the discussions”.
With Suzano’s withdrawal, the negotiations between International Paper and DS Smith are expected to proceed without obstacles, with the merger anticipated to be completed in the fourth quarter of 2024.
