Eldorado’s transfer to Paper Excellence suspended due to lack of authorizations
The Federal Public Prosecutor's Office has asked the courts to veto the transfer until the Indonesian multinational presents the authorizations from INCRA and the National Congress
Last week, the Federal Public Prosecutor’s Office (MPF) asked the courts to continue preventing the transfer of the remaining shares of pulp producer Eldorado Brasil to Paper Excellence (PE), until the Indonesian multinational presents the authorizations from the National Institute for Colonization and Agrarian Reform (Incra) and the National Congress to take control of the land under management by the Brazilian company.
According to the MPF, this means that the proper authorizations have not been presented by PE, which is essential for the control of the land that the Brazilian company holds. The complaint was made through a Public Civil Action (ACP) filed by the state of Mato Grosso do Sul, where Eldorado’s forests and factory are located.
Prosecutors Marcelo José da Silva and Michel Havrenne also asked that the MPF be accepted as the holder of the lawsuit, since it involves “an extremely relevant primary public interest, consisting of guaranteeing strict compliance with the rules that restrict the acquisition of rural properties by foreign and similar persons, in order to safeguard, among other things, national sovereignty and security”.
Therefore, in addition to the lack of authorization from INCRA and the National Congress for the acquisition by Paper Excellence, the MPF warns that, in some municipalities, the area held by Eldorado exceeds the limits set by law for acquisition by foreigners.
This position of the Federal Public Prosecutor’s Office follows the opinions of the Attorney General’s Office (PGR), the Federal Supreme Court (STF), the Federal Attorney General’s Office (AGU) and the National Council of Justice (CNJ).
According to a decision by the Federal Regional Court of the 4th Region (TRF-4), in another action, the transfer of Eldorado’s shares to Paper Excellence remains impeded until the foreign company presents the authorizations from INCRA and the National Congress. In the request, the MPF points out that it “will not interfere in the terms of the negotiation between the parties – a private business agreement”.
In this sense, the dispute between Paper Excellence and J&F Investimentos has been going on for six years without a conclusion. The Brazilian side owns 50.5% of the shares, while the foreign side owns 49.5% of the same shares.
