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Suzano (SUZ) Drops Acquisition Plans for International Paper
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Suzano (SUZ - Free Report) , in a recent filing, has announced that it does not intend to pursue the acquisition of rival International Paper (IP - Free Report) any further.
Suzano, the world’s largest pulp producer, earlier expressed verbal interest in an all-cash acquisition of International Paper for $42 per share, or a total deal value of around $15 billion. Per reports, Suzano had been in discussions with potential lenders to finance the transaction. However, any deal with Suzano was contingent upon International Paper abandoning its merger agreement with DS Smith (DITHF - Free Report) , signed in April 2024.
In a filing dated May 22, Suzano confirmed its interest in International Paper’s assets but stated that no final decision had been made at that time regarding the deal.
Had a deal been agreed upon by Suzano and International Paper, it would have expanded SUZ’s international footprint while diversifying its operations in the growing packaging sector.
In its recent filing, Suzano confirmed that it has reached what it considers to be the maximum offer price for the transaction to generate value. In the absence of any interest from International Paper and alignment with its commitment to maintaining capital discipline, Suzano stated that it will no longer engage in any takeover talks with International Paper.
Meanwhile, International Paper has cleared a regulatory milestone in its acquisition process for DS Smith with the expiration of the mandatory 30-day waiting period under the Hart-Scott-Rodino Act. The combination, which remains subject to the fulfillment of remaining conditions including regulatory clearance from the European Commission and the court’s sanction, is expected to close by the fourth quarter of 2024.
The combination of International Paper and DS Smith will establish a global leader in sustainable packaging solutions that is well-positioned in attractive and growing markets. It will have a significantly stronger corrugated packaging business in Europe and enhanced customer offerings.
Price Performance
Shares of Suzano have lost 18.9% year to date against the industry's 9.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stock to Consider
SUZ currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Ero Copper’s 2024 earnings is pegged at $1.66 per share. The consensus estimate for 2024 earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 39% year to date.
Image: Bigstock
Suzano (SUZ) Drops Acquisition Plans for International Paper
Suzano (SUZ - Free Report) , in a recent filing, has announced that it does not intend to pursue the acquisition of rival International Paper (IP - Free Report) any further.
Suzano, the world’s largest pulp producer, earlier expressed verbal interest in an all-cash acquisition of International Paper for $42 per share, or a total deal value of around $15 billion. Per reports, Suzano had been in discussions with potential lenders to finance the transaction. However, any deal with Suzano was contingent upon International Paper abandoning its merger agreement with DS Smith (DITHF - Free Report) , signed in April 2024.
In a filing dated May 22, Suzano confirmed its interest in International Paper’s assets but stated that no final decision had been made at that time regarding the deal.
Had a deal been agreed upon by Suzano and International Paper, it would have expanded SUZ’s international footprint while diversifying its operations in the growing packaging sector.
In its recent filing, Suzano confirmed that it has reached what it considers to be the maximum offer price for the transaction to generate value. In the absence of any interest from International Paper and alignment with its commitment to maintaining capital discipline, Suzano stated that it will no longer engage in any takeover talks with International Paper.
Meanwhile, International Paper has cleared a regulatory milestone in its acquisition process for DS Smith with the expiration of the mandatory 30-day waiting period under the Hart-Scott-Rodino Act. The combination, which remains subject to the fulfillment of remaining conditions including regulatory clearance from the European Commission and the court’s sanction, is expected to close by the fourth quarter of 2024.
The combination of International Paper and DS Smith will establish a global leader in sustainable packaging solutions that is well-positioned in attractive and growing markets. It will have a significantly stronger corrugated packaging business in Europe and enhanced customer offerings.
Price Performance
Shares of Suzano have lost 18.9% year to date against the industry's 9.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stock to Consider
SUZ currently carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock from the basic materials space is Ero Copper Corp. (ERO - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ero Copper’s 2024 earnings is pegged at $1.66 per share. The consensus estimate for 2024 earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 39% year to date.