Suzano SA, Brazil’s largest pulp producer, has decided to end its pursuit of acquiring International Paper Co., a U.S.-based paper manufacturer. This decision led to a significant surge in Suzano’s shares by 16% in São Paulo, while International Paper’s shares tumbled by 11%. Suzano withdrew from the deal as it was unable to engage International Paper in serious negotiations and was unwilling to increase its bid further. The termination of talks simplifies International Paper’s plans to acquire DS Smith Plc, a deal expected to be completed by the fourth quarter. The acquisition of International Paper would have allowed Suzano to diversify into the packaging sector, but investors had raised concerns about the firm’s ability to maintain its investment grade if it took on more debt. Suzano’s notes due 2029 showed a positive market reaction, gaining 0.9% to rise above par. Notably, International Paper had previously rejected an initial offer of $42 per share, and sources indicated that the company was unlikely to accept any bid below $50 per share.

Pulp & Paper, Packaging, Financial Services,Brazil, United States