Suzano and Fibria Confirm Negotiations, but No Deal has been Reached
"The involved parties are yet analyzing the eventual possibilities to enable the transaction. However, there is no definition of terms and conditions for the conclusion of an eventual transaction." – Fibria.
March 9 2018 – Brazilian pulp and paper producer Suzano and Brazilian market pulp producer Fibria today issued separate statements related to speculative news reports saying the two are close to merging.
Both companies confirmed that negotiations about a potential deal have taken place and are ongoing, but no definite terms or agreements have been reached.
The companies warned that there is no guarantee an agreement will be reached and confirmed with their controlling shareholders that up to this point there is no definition on the potential deal.
In a written statement, Fibria said, “In addition to the information disclosed to the market on February 19, 2018, in response to the Letter 211/2018-SAE of B3 S.A. – Brasil, Bolsa e Balcão, the controlling shareholders of Fibria; Votorantim S.A. and BNDES Participações S.A. BNDESPAR, hereby inform that we are keeping discussions with Suzano and its controlling shareholders, aiming to evaluate a possible business involving Fibria and Suzano.
"The involved parties are yet analyzing the eventual possibilities to enable the transaction. However, there is no definition of terms and conditions for the conclusion of an eventual transaction.
"Fibria's controlling shareholders affirm that, despite the negotiation, there is no certainty that such business will materialize. Aware of our responsibility under the applicable law and regulation, we reinforce our commitment to timely communicate any material development of this matter, if any."
Fibria noted that “it is not part of such negotiations and does not have any additional information.”
Suzano said that in case an agreement is reached, it will disclose the deal according to the applicable regulations.
SOURCE: Suzano Papel e Celulose S.A. and Fibria Celulose S.A.