Suzano concludes with Fibria competitor megafusão

Suzano Papel e Celulose and Fibria reported on Monday, 14, the completion of the merger between the two companies, announced in March last year. The last step of the operation was held on Monday after having effected payment of Suzano R $27.8 billion to shareholders of Fibria, which passed to hold stake in Suzano, new brand. The Union of the two companies creates a global giant with a production capacity of 11 million tons of pulp and 1.4 million tons of paper per year. The group, which has 11 factories in Brazil and 37000 direct and indirect workers, exports R $26 billion per year and is present in more than 80 countries. The operation has already obtained the approval of the competition authorities inside and outside of Brazil. Biggest deal. The announcement of the merger of Suzano and Fibria was the biggest transaction in 2018 – the deal is valued at $ $14.5 billion, followed by the purchase of brazilian aircraft manufacturer Embraer by Boeing. In a report, the risk rating agency Moody's reported that the completion of this deal should improve credit quality of Suzano with long-term benefits in terms of scale, size, financial flexibility and operational synergies between the two companies. "Although the levels of indebtedness of Suzano have increased substantially due to the transaction, we believe that the company will be able to reduce the leverage ratio quickly, given the strong generation of cash flow that will be directed to pay the debt," the credit rating agency.