Suzano, the leading global market pulp producer, has submitted a proposal to purchase the assets of International Paper (IP), a U.S. multinational pulp and paper company, valued at approximately US$ 15 billion. This offer marks the beginning of the Brazilian company’s internationalization efforts, as well as its entry into the corrugated packaging market.
The proposal suggests full payment in cash and already reserves part of the additional resources that will be generated by the operation of the Closed Project, which is scheduled to begin at the end of June. In addition, the proposal includes the condition that IP cancels a purchase agreement with British competitor DS Smith, valued at approximately US$ 9.9 billion.
This agreement between IP and DS Smith was established less than a month ago, conflicting with the British company Mondi, which had already announced the combination with DS Smith.
If the acquisition is completed, Suzano will assume control of 28 pulp, paper and packaging mills, together with 200 carton converting units and 18 recycling units, distributed in ten countries, in addition to the United States.
IP, leader in the U.S. packaging market with more than 30% share, reduced its exposure to the printing and writing paper business in 2021, when it separated the assets of this area, including the Brazilian mills, in a new company called Sylvamo.
Suzano’s offer comes amid a period of consolidation in the global packaging industry, driven by the acquisition of U.S.-based WestRock by Ireland’s Smurfit Kappa, a deal expected to be completed by the end of this quarter.
The merger between WestRock, the largest corrugated board manufacturer in North America, and Smurfit Kappa, the industry leader in Europe, will result in the formation of a global giant with estimated revenues of US$34 billion and a presence in more than 40 countries.
In addition, the acquisition of IP’s assets will further strengthen Suzano’s position in the fluff pulp market, one of the pillars of its strategic plan, in a segment that is growing rapidly. In 2023, IP recorded sales of US$ 18.9 billion, approximately half of the Brazilian company’s net revenues of US$ 39.8 billion.
