Brazilian company Suzano has cleared one of the main regulatory hurdles in its international expansion after receiving unconditional approval from the European Commission for its US$3.4 billion joint venture with Kimberly-Clark. The authorization was confirmed on Monday, May 11, following a preliminary review by the European Union antitrust authorities, which identified no significant competition concerns.
The agreement, originally announced in June 2025, establishes that Suzano will acquire a 51% stake in Kimberly-Clark’s international tissue business, while the American multinational will retain the remaining 49%. As part of the transaction, the Brazilian company will pay approximately US$1.73 billion in cash upon closing and will gain control of global brands such as Kleenex, Scott and Cottonelle across more than 70 countries.
The new company will be headquartered in the Netherlands and will combine 22 industrial facilities across 14 countries in Europe, Asia, the Middle East, South America, Central America, Africa and Oceania, in addition to approximately 9,000 employees. The agreement also grants Suzano a future option to acquire Kimberly-Clark’s remaining stake.
The European approval represents a strategic milestone for Suzano, the world’s largest pulp producer, as it seeks to diversify revenue beyond the forest-based commodity business and expand its participation in higher value-added products with more resilient demand.
The transaction takes place amid an ongoing consolidation trend in the global paper industry, driven by structural overcapacity and slowing demand in some traditional consumption segments. Despite the European approval, the deal is still under review by the United Kingdom’s Competition and Markets Authority (CMA), with an initial decision expected on May 28.
Through this operation, Suzano accelerates its transformation from a global pulp producer into an international tissue and hygiene platform, reinforcing its growth strategy beyond the traditional forestry market.
