SAO PAULO (Reuters) – Brazilian pulpmaker Suzano is assessing opportunities for merger and acquisitions that total $3 billion, Chief Executive Beto Abreu said on Friday, although taking a more “strict” stance on their returns given global uncertainties.
Suzano is interested in sectors like packaging, tissue, fluff pulp and in the textile market, Abreu told journalists in a conference call after the company reported lower-than-expected first quarter core earnings.
Suzano, one of the world’s largest pulpmakers, entered talks last year to buy International Paper but did not reach a deal due to the lack of a price agreement between the parties.
The Brazilian company has done billionaire disbursements in the past few years on acquisitions and output expansion, a move that also raised some caution among analysts about its leverage ratio.
Last month, Reuters reported, citing sources, that Suzano was among the final bidders for Kimberly-Clark’s international tissue business.
Sao-Paulo traded shares of Suzano were down 1.5% on Friday.
(Reporting by Alberto Alerigi Jr; Writing by Andre Romani; Editing by Gabriel Romano)
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