Suzano and Fibria they discuss possible merger to create a global giant

The two largest pulp producers in the country are back to talk about a possible merger to create a global giant in the industry. Suzano Papel e Celulose, second in the rankings, sought the Fibria leader to discuss the possibility of combining active or even propose an acquisition, it was established the State with three people familiar with the matter. The conversations, which lay face to face two of the most traditional industrial families in the country-Feffer, owner of the Suzano, and Votorantim, Fibria's shareholder-are underway, but there is still an official proposal on the table. According to a person related to the Suzano, who declined to identify himself, the conversations began about three months ago. Although there is no official negotiations, representatives of the controllers of the two companies met and set out to discuss what would be the best model of association between the two companies. There is, however, a closed format about the possible deal. Eucalyptus pulp company in the world, Fibria has among its shareholders the Group Votorantim and BNDES participation's arm, the BNDESPar. The negotiations would have to be subjected to these shareholders, which are part of the block of control of the group. The company, with revenues of RS $11.7 billion in 2017, is evaluated in R $29.7 billion on the market. Already the Suzano, BNDESPar as minority shareholder, had net revenue of R $10.5 billion in 2017 and your market value is R $22.15 billion, according to Economática. According to sources close to the Bank, the two companies have consulted separately BNDES about the partnership between them and found no objection. The companies would have come into contact with banks to advise it on a possible conduct of business, says a source in the financial market. Sought, Fibria and its shareholders informed that "are not aware of any negotiations involving the company. There is, at the moment, nothing in progress ". Already the Suzano wouldn't comment. The BNDES has not returned requests for interview. Consolidation. The acquisition of the Eldorado group, three Ponds, by PE, R $15 billion, moving the pulp and paper market in Brazil. When the Baptist family decided to put your company up for sale, several national and foreign groups made proposals to take the deal. The company of the brothers Baptiste came to sign a memorandum of understanding with Chile's Arauco, but negotiations were not forward. Fibria and Suzano also had interest in Eldorado, but Paper Excellence made the best proposal to controllers, who sold several assets last year, after become whistle-blowers. Market sources said that the EP would have interest to further expand its business in Brazil for new acquisitions. Sought, the PE, through your advice, reported that the group is focused on completing the acquisition of Eldorado. One of the biggest global consumer of pulp, Asian groups are looking at assets in Brazil and Latin America as a way to ensure supply of raw material.