InsideArbitrage Potential Deal Alert: International Paper (IP) Approached by Brazil’s Suzano

POTENTIAL DEAL DETAILS

According to Reuters, Brazilian pulp and paper company Suzano has approached International Paper (IP) to express interest in an all-cash acquisition that would be worth almost $15 billion.

International Paper Investor Relations

Update(s):

May 20, 2024: According to Reuters, Suzano has been in talks with its advisers about sweetening its $15 billion acquisition offer for International Paper (IP).

May 23, 2024: According to Bloomberg, Suzano SA is in talks with banks including Mizuho Financial Group (MFG), Nomura Holdings (NMR), and Mitsubishi UFJ Financial Group (MUFG) on the financing of a potential bid for International Paper (IP). The Brazilian company is mulling a cash-and-stock offer for all of International Paper’s assets.

June 3, 2024: According to Bloomberg, International Paper’s (IP) CEO Andrew Silvernail traveled to London to reaffirm his company’s commitment to merger partner DS Smith Plc, downplaying a takeover offer from Suzano SA that threatens to derail their pending £5.8 billion ($7.4 billion) deal, which they entered in April. Meanwhile, Suzano is working on a revised offer for International Paper, after the US company rejected an earlier informal proposal valuing the company at almost $15 billion.

June 7, 2024: According to Bloomberg, Suzano SA is considering taking on significant debt, up to $19 billion, alongside stock and cash, for a potential bid on International Paper (IP), aiming to maintain the combined company’s net debt close to five times earnings before interest, taxes, depreciation, and amortization.

June 26, 2024: Suzano announced that it will not pursue a transaction involving the acquisition of International Paper (IP), as it has “reached the maximum price for the transaction to generate value for Suzano, without engagement from the other party”. Suzano has decided to terminate the negotiations.

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