According to Reuters, the Brazilian pulp producer Suzano is rumored to have approached American International Paper (IP) with a potential purchase offer of $15 billion, which is close to Suzano’s market value. If the deal were to go through, it would allow Suzano to diversify and expand geographically into North America, reducing country risk and entering the packaging business. However, Finnish forest companies such as UPM and Stora Enso mainly operate in Europe and have limited overlap with Suzano and IP.
Inderes analyst Antti Viljakainen believes that consolidation in the forest industry can be beneficial but questions the potential value creation of this acquisition due to low synergy and large scale. The market response to the news was not positive, and the outcome remains uncertain. Viljakainen doubts its success overall, making the deal seem questionable and uncertain.
