Suzano SA Considers Bid for Clearwater Paper Corp.

Brazil’s Suzano SA is exploring a potential acquisition of Clearwater Paper Corp., aided by advisers. Clearwater has seen a 31.6% decline in shares this year and possesses a market cap of $409 million. Suzano continues to expand its U.S. operations after recent acquisitions of paperboard mills.

Brazil’s Suzano SA is currently assessing a potential acquisition of Clearwater Paper Corp., as reported by sources familiar with the situation. The firm is enlisting the help of a financial adviser to facilitate the negotiations, although it remains uncertain whether an agreement will ultimately be achieved. Both Suzano and Clearwater representatives have refrained from providing commentary on this matter.

Suzano SA, headquartered in Brazil, is recognized as the foremost supplier of hardwood market pulp in North America and is actively expanding its foothold in the United States. Recent strategic moves include the acquisition of two paperboard mills situated in Arkansas and North Carolina for a total value of $110 million. Clearwater Paper Corp., based in Spokane, Washington, specializes in the production of pulp and paperboard products and currently has a market capitalization of approximately $409 million. However, the company has faced challenges, with its stock value decreasing by 31.6% this year, reflecting broader market concerns.

In summary, Suzano SA’s exploration of a bid for Clearwater Paper underscores its commitment to growing its presence in the U.S. market, particularly in the pulp and paper sector. As negotiations proceed with the assistance of advisers, the outcome remains pending and may significantly impact both companies. Clearwater’s declining stock price presents a challenging context for potential negotiations, warranting close attention from industry analysts and stakeholders.

Original Source: www.bnnbloomberg.ca