According to a Bloomberg report on Wednesday, Brazilian pulp manufacturer Suzano Papel e Celulose will no longer pursue the acquisition of International Paper, as the U.S. paper company has cleared significant regulatory hurdles in its merger with the UK's DS Smith PLC.
Bloomberg's report clarified earlier speculation that Suzano might make a competitive bid for International Paper, potentially worth $15 billion. Previously, International Paper had agreed to a $7.2 billion all-stock deal with DS Smith. DS Smith's offer narrowly beat Mondi PLC's competing bid.
International Paper agreed to DS Smith's offer in April. However, both companies had to go through a waiting period to comply with U.S. regulatory requirements. On Wednesday, the companies announced in a statement that the waiting period has ended, and the merger will take effect in the fourth quarter of 2024.
International Paper is the world's largest pulp and paper manufacturer. However, in recent years, the company has faced challenges due to weak market conditions, the advancement of digitalization, and concerns about the environmental impact of paper manufacturing.
The merger with DS Smith is expected to help the company expand its international operations. This merger could also bring potential cost reduction measures.
