EU Clears Suzano-Kimberly-Clark Joint Venture Without Conditions

The approval marks an important step for Suzano, widely recognized as the world’s largest pulp maker, as it moves forward with a transaction first announced in June of last year. Under the terms of the agreement, Suzano will acquire a 51% stake in Kimberly-Clark’s international tissue operations, which include well-known consumer brands such as Kleenex, according to Reuters.

The European Commission’s decision had been widely anticipated after Reuters reported last week, citing sources familiar with the matter, that the deal was expected to receive full approval without remedies or conditions. Monday’s decision removes a major regulatory hurdle for both companies as they seek to expand their global tissue business presence.

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

While the European Union has now signed off on the transaction, the deal remains under review in the United Kingdom, where competition authorities are continuing their assessment, per Reuters.

The approval comes at a time when corporate mergers and joint ventures are facing heightened regulatory attention globally. Competition authorities in major markets have been weighing not only consumer interests but also broader considerations including geopolitical pressures, sustainability goals, and calls for regulators to take a more flexible approach toward the creation of stronger regional industrial players, according to Reuters.

Source: Reuters