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EU Set to Clear Suzano’s $3.4 Billion JV With Kimberly-Clark

By  |  May 5, 2026

Brazilian pulp producer Suzano is expected to secure unconditional European Union antitrust approval for its $3.4 billion joint venture with U.S.-based consumer goods company Kimberly-Clark, according to two people familiar with the matter. The decision, which has not previously been reported, would mark a significant step forward for the transaction first announced in June last year.

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    The European Commission, the bloc’s competition regulator, is expected to complete its preliminary review by May 11 and approve the deal without conditions, according to a statement from people with direct knowledge of the process. Per statement from those sources, regulators do not currently see competition concerns that would warrant a deeper investigation.

    Under the terms of the agreement, Suzano will acquire a 51% stake in Kimberly-Clark’s international tissue business, while Kimberly-Clark will retain the remaining 49%. The business includes household brands such as Kleenex, Scott, and Cottonelle. According to a statement on the structure of the transaction, Suzano will also hold a call option that could allow it to purchase Kimberly-Clark’s remaining stake in the future.

    Read more: Kimberly-Clark Bets Big on Health with $40 Billion Kenvue Deal

    While the EU appears poised to clear the deal, the transaction remains under review in the United Kingdom. The UK’s Competition and Markets Authority is examining the joint venture, with a decision expected by May 28.

    The deal comes at a time of heightened regulatory oversight globally. According to a statement from industry observers, competition authorities have been applying closer scrutiny to major transactions as governments weigh consumer interests alongside geopolitical considerations, sustainability goals, and industrial policy objectives.

    The broader paper and tissue sector is also undergoing consolidation as manufacturers contend with weaker demand and excess production capacity. Per statement from market participants, companies across the consumer goods supply chain are also facing higher energy, freight, and fuel costs tied to disruptions linked to the conflict in Iran.

    The European Commission declined to comment on the review. Suzano did not immediately respond to requests for comment, while Kimberly-Clark did not reply to emailed inquiries.

    Source: Investing