Merger of Suzano and Fibria depends on European approval

Suzano Papel e Celulose took another important step to consummate the transaction will combine their businesses with those of Fibria. The company filed the day before yesterday at the European Commission the application of transaction analysis, which can be completed even in 2018. If the European antitrust body position already in the first stage of analysis, the decision may be known in 35 days. Regulators of the United States, China and Turkey have already approved the operation without restrictions. In Europe, the company had just done the pré-arquivamento of the application. In Brazil, the Administrative Council for economic Defense (Cade) haven't announced your decision, but all the previous steps have been completed, according to a source heard by the Value. Officially, there is no expectation on the Cade. But the assessment, between market sources, is that both the European regulator as the Brazilian might announce a decision before November 15, informed by the European Commission on your site for this case. After the approval of the authorities, Suzano will list ADRs (receipts of shares) on the New York Stock Exchange and the expectation is that the transaction be completed within 45 days. The agreement signed between Fibria controllers and Suzano establishes that the business can be taken further even if antitrust authorities determine the sale of up to 1.1 million tons in capacity. However, is the growing perception that the merger can be approved without restrictions or only with some behavioral remedy of negligible impact before the synergies generated. Almost a month ago, shareholders of both companies approved the transaction, in one of the steps considered fundamental to the consummation of the deal announced on March 16. At the time, analysts pointed out that the approval of investors reduced the risk of the transaction not be completed and the closing of the transaction could occur this year. Before, the Board of the Brazilian Securities Commission (CVM) has also given your consent to the terms of the reorganization proposal. At the end of September, the Suzano announced that reduced from $ $4.4 billion to $ $2.2 billion the value of bridging loan that is part of the financial structure for payment to shareholders of Fibria-originally, the value was even bigger, $ $6.9 billion.