Investing.com – Brazilian pulp producer Suzano Papel e Celulose (NYSE:) will no longer bid to buy International Paper (NYSE:) after the US papermaker cleared a major regulatory hurdle to its merger with Britain’s DS Smith PLC (LON:), Bloomberg reported Wednesday.
The Bloomberg report refutes earlier rumors that Suzano was considering a rival bid for $15 billion in intellectual property after the paper maker agreed to a $7.2 billion all-stock deal with DS Smith. Smith’s bid has just edged out a rival bid from Mondi PLC (LON:).
IP agreed to Smith’s proposal in April. But both companies had to wait to comply with US regulations. The period ended this week, the companies said in a statement Wednesday, and the merger is expected to take effect in the fourth quarter of 2024.
IP is the world’s largest pulp and paper producer. But the company has faced sluggish market conditions in recent years amid a wider shift to digital technology and concerns about the environmental impact of paper production.
However, the merger with DS Smith is expected to help the firm expand its international presence. The merger could also lead to some potential cost-cutting measures.