Brazilian pulp and paper producer Suzano announces that they have reached a maximum price for International Paper and will not pursue with the proposed acquisition of the US paper and packaging group.
In a press release, Suzano stated, "Following up on the Material Fact disclosed on May 22nd, 2024, informs its shareholders and the market in general that, after some negotiations with the International Paper Company regarding a potential transaction between the companies, the Company has reached what it believes to be the maximum price for the transaction to generate value for Suzano, without engagement from the other party. Therefore, in observance of its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper."
Suzano adds, "It is important to emphasize that it has always been a condition of Suzano for the completion of this transaction that the engagement between the parties be based on private, confidential, and amicable terms. As it was not possible to proceed in this manner, Suzano has decided to terminate the negotiations."
According to Euwid citing media reports, Suzano was in talks with advisors about an offer for IP worth $15bn. However, the deal was reportedly conditioned on IP abandoning its agreement to acquire DS Smith.