Suzano looks set to make a bid for International Paper

It has been reported by Reuters that Brazilian pulp and paper company, Suzano, has approached International Paper, to express interest in an all-cash acquisition that would be worth almost $15 bn.

The approach comes less than a month after IP agreed to acquire DS Smith for $7.2 bn, beating the rival bid from Mondi. This deal, which is scheduled to close by the fourth quarter of 2024, could be disrupted were Suzano to press ahead with its bid for IP.

Suzano has communicated its $42-per-share offer to IP’s board of directors verbally, and could submit a formal bid soon. Suzano said in a securities filing that it has neither signed any agreement with IP for a potential business combination nor has any decision been made by the company’s management in respect to a potential deal.

International Paper declined to comment on Suzano’s approach, saying the company continues to focus on completing its deal for DS Smith. “The IP team, led by new CEO Andy Silvernail, is executing on business strategies and pursuing commercial and cost improvement initiatives across the portfolio to achieve best-in-class profit margins and significant earnings growth. In addition, as industry conditions continue to improve, IP will come out of a cyclical bottom for earnings,” International Paper said in a statement.

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