Fibria wants to join the Arauco in Eldorado

Fibria, the world''s largest pulp company, plans to enter into partnership with Chile''s Arauco in Eldorado, which is owned by J&F, a holding of the Batista brothers, found the State. The Chilean company signed a confidentiality agreement in the last day day 16 with the pulp of the company own the Friboi for possible purchase and is pointed to as a favorite to keep the business.
With debt of about R $8 billion, the company of the brothers Batista is coveted also by Suzano Papel e Celulose, the Feffer family. The value of the deal is estimated to be between R and R $11 billion $12 billion, included the indebtedness.
The company, however, it makes more sense to Fibria, which has the Votorantim Group and the participation of the national economic and Social Development Bank, BNDESPar, as major shareholders. El Dorado is also factory in Três Lagoas, Mato Grosso do Sul, where Fibria has your installed industrial complex.
Chile''s Arauco doesn''t have a relevant participation in the Brazilian pulp and paper-buying from Eldorado would be the gateway of the company in the country. The Chile-based group, has a production unit in Uruguay in partnership with Stora Enso, one of the largest producers of Europe. In 2007, the Swedish-Finnish company had already sold assets in Brazil to the Chilean company. Fibria, for your time, have a partnership with Stora Enso in Veracel, with units in Brazil.
The fact of the Arauco and Fibria have shareholders in strategic business makes room for a possible partnership between the two companies, according to another source. The Arauco hired banco Santander to advise it in operation. Fibria has with the Advisor the Bank Morgan Stanley. Sought, Fibria doesn''t talk about the subject. The Arauco did not return requests for interviews.