Suzano-Fibria deal set for unconditional approval in Brazil

4 October 2018 9:32am

21 September 2018. By Ana Paula Candil.

Suzano Papel e Celulose's planned merger with Fibria Celulose is set for unconditional approval in Brazil, MLex has learned.

The Superintendence of the Administrative Council for Economic Defense, or CADE, is understood to have formed an opinion on the case and is expected to issue a decision within 45 days. It has been analyzing the deal between the pulp producers for 84 days.

Rival International Paper is participating in the merger review. If the deal receives clearance, the company could appeal with the agency’s upper-tier Tribunal.

CADE councilors also have 15 days after the Superintendence's decision is published to ask to reconsider the case in a process known as ‘avocation’ if they identify any competition concerns.

Last month, Suzano and Fibria said the results of CADE's market test consisted of mostly neutral or positive feedback regarding their deal. The market test was performed by sending questionnaires to competitors, clients and suppliers in the forestry, pulp, paper and ports markets. Suzano and Fibria got a neutral or positive rating from at least 24 of the 37 players consulted, according to responses that are publicly available.

Suzano and Fibria filed notification of their deal worth 36 billion reais ($11 billion) with CADE on June 29. The initial review deadline is Feb. 25, 2019.

Fibria is listed on the New York Stock Exchange and the Bovespa. Shares of Suzano are traded on the Bovespa.

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