Brazil’s Suzano SA Evaluates Potential Acquisition of Clearwater Paper Corp.
Suzano SA is considering an acquisition of Clearwater Paper Corp., with advisory support for negotiations. No agreement has been finalized, and the deal’s success is uncertain. Clearwater, based in Spokane, has seen a significant drop in its market value this year.
Suzano SA, a leading Brazilian firm, is currently assessing the possibility of acquiring Clearwater Paper Corp., as reported by knowledgeable insiders. The company is collaborating with an advisor to facilitate potential negotiations; however, it has been emphasized that no definitive agreement has been established, and the prospects of reaching a deal remain uncertain. Both Suzano and Clearwater representatives have refrained from providing any comments on this matter.
Suzano SA stands as the largest producer of hardwood market pulp in North America and has been actively expanding its footprint within the United States. This expansion is evidenced by recent acquisitions, including two paperboard mills situated in Arkansas and North Carolina, a transaction valued at $110 million. Clearwater Paper Corp., based in Spokane, Washington, specializes in the production of pulp and paperboard products, albeit with a current market capitalization of $409 million, a decline of 31.6% in its stock value this year, indicating some financial challenges.
In summary, while Suzano’s pursuit of Clearwater Paper Corp. indicates a strategic move towards reinforcing its American operations, the outcome remains speculative due to the lack of a formalized agreement at this time. The ongoing discussions, paired with Clearwater’s recent market performance challenges, highlight the dynamic nature of the pulp and paper industry.
Original Source: www.bnnbloomberg.ca
