EU Approves Suzano Acquisition of Kimberly-Clark IFP Business
The European Commission has granted unconditional Phase I approval to Suzano for its proposed acquisition of the International Family Care & Professional (IFP) business of Kimberly-Clark, stating that the transaction does not raise competition concerns within the European Economic Area (EEA).
The deal involves Kimberly-Clark IFP NewCo B.V., a newly created Netherlands-based subsidiary established specifically for the transaction. The IFP business covers the manufacturing and sale of tissue products, including toilet paper and facial tissues, across Europe, Africa, South and Central America, Puerto Rico, the Middle East, Asia, and Oceania.
Suzano is one of the world’s leading suppliers of bleached eucalyptus kraft pulp (BEKP), an important raw material used in tissue production. The company also operates a tissue products business in Brazil.
As part of its review, the European Commission examined the vertical integration aspects of the merger, particularly the combination of a major BEKP supplier with a tissue manufacturer. However, regulators concluded that competing tissue producers in the EEA would continue to have adequate access to BEKP following the acquisition.
The Commission noted that Suzano’s market share in the EEA remains moderate and that several alternative pulp suppliers continue to operate in the region. It also highlighted the availability of spare production capacity in the BEKP market, which would help maintain healthy competition.
Additionally, the Commission stated that tissue manufacturers in the EEA typically source pulp from multiple suppliers and could switch suppliers without major difficulty if required. The relatively limited market presence of Kimberly-Clark’s IFP business in the EEA was also considered insufficient to allow the merged company to restrict competition effectively.
Based on these findings, the European Commission concluded that the combined company would neither have the ability nor the incentive to limit access to BEKP pulp supplies for competing tissue manufacturers in the EEA.