Investing.com–Brazilian pulp maker Suzano Papel e Celulose (NYSE:) will not pursue a bid for International Paper (NYSE:), after the U.S.-based papermaker cleared a major regulatory hurdle to a merger with Saudi-based DS. United. Smith PLC (LON:), Bloomberg reported on Wednesday.
The Bloomberg report dampens earlier speculation that Suzano was considering a $15 billion rival bid for the intellectual property, after the papermaker agreed a $7.2 billion all-stock deal with DS Smith. Smith’s offer just beat out a rival bid from Mondi PLC (LON :).
IP accepted Smith’s offer in April. But both companies had to enter a waiting period to comply with US regulations. The period ended this week, and the merger is scheduled to take effect in the fourth quarter of 2024, the two companies said in a statement on Wednesday.
IP is the world’s largest pulp and paper manufacturer. But the company has faced sluggish market conditions in recent years, amid a broader trend toward digitalization, as well as concerns about the environmental impact of the paper industry.
But the merger with DS Smith is expected to help the company expand its international presence. The merger could also see some potential cost-cutting measures.
