After Paper Excellence had also shown interest in acquiring pulp producer Fibria, it has now been announced that Fibria will merge with Suzano Papel.
The world's two largest producers of hardwood pulp will merge. Brazilian development bank BNDES announced that Fibria Celulose and Suzano Papel e Celulose, both headquartered in São Paulo, will combine their businesses. BNDES - through its subsidiary Participações (BNDESPar) - is one of the two main shareholders of Fibria and holds a minority stake in Suzano.
The merger of the two pulp producers will create a mega-group with a production capacity of around 10.8 million t of bleached eucalyptus pulp and 1.3 million t of paper and board.