Suzano SA is considering an offer for Clearwater Paper Corp., working with an advisor for negotiations. No agreement has been reached yet, and Clearwater’s shares have fallen significantly this year. Suzano continues to expand its presence in the U.S. pulp and paper market.
Suzano SA, a prominent Brazilian company, is considering making an offer for Clearwater Paper Corp., as reported by knowledgeable sources. The firm has enlisted an advisor in pursuit of negotiations, although at this stage, no agreement has been reached, and it remains uncertain whether a deal will be finalized. Both Suzano and Clearwater representatives have chosen not to provide comments regarding this ongoing matter.
Headquartered in Spokane, Washington, Clearwater Paper specializes in the manufacturing of pulp and paperboard products. As of the recent market close, the company had a market capitalization of approximately $409 million, reflecting a significant decline of 31.6% in its stock value this year. In contrast, Suzano, the leading supplier of hardwood market pulp in North America, has been actively expanding its footprint within the United States, recently acquiring two paperboard mills in Arkansas and North Carolina for a total value of $110 million.
The exploration of an acquisition by Suzano SA is part of a broader strategy to enhance its position within the North American market. This potential transaction underlines Suzano’s commitment to expansion in the pulp and paper industry, especially at a time when Clearwater Paper, despite its established market presence, faces declining share values. The competitive nature of the pulp and paper sector necessitates such strategic maneuvers, as companies seek to bolster their capabilities and market share.
In summary, Suzano SA is actively contemplating an acquisition of Clearwater Paper Corp., reflecting its ongoing strategy to strengthen its market position in North America. While negotiations are in progress, both parties maintain confidentiality about the discussions. The outcome remains uncertain, particularly given Clearwater’s recent underperformance in stock value, highlighting the challenges faced in the industry.
Original Source: www.bnnbloomberg.ca
