The Competition and Markets Authority (CMA) has authorised a proposed joint venture involving Suzano International and Kimberly-Clark.
The UK competition regulator began a phase 1 inquiry into the $3.4bn (£2.5bn) transaction in March.
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Announcing its decision, it said: “The CMA has cleared the anticipated joint venture between Suzano International and Kimberly-Clark Corporation.”
Originally unveiled in June last year, the transaction will result in Suzano acquiring a controlling 51% interest in Kimberly-Clark’s international tissue operations.
Kimberly-Clark will retain the remaining 49% stake. Under the terms agreed, Suzano is to pay $1.73bn in cash on completion, with the final amount subject to customary adjustments after closing.
The arrangement also gives Suzano the right to acquire Kimberly-Clark’s shareholding at a future date.
The joint venture will be headquartered in the Netherlands and will include 22 manufacturing sites spread across 14 countries in Europe, Asia, the Middle East, South America, Central America, Africa and Oceania.
Together, those facilities represent annual installed tissue capacity of roughly one million tonnes.
The new company will be overseen by a board of five directors, three appointed by Suzano and two by Kimberly-Clark.
It is set to employ about 9,000 people and will sell brands including Kleenex, Scott, Cottonelle and WypAll in more than 70 markets worldwide.
The operations covered by the deal posted net sales of approximately $3.3bn in 2024. Kimberly-Clark will keep its consumer tissue and professional businesses in the US, along with its holdings in existing joint ventures in Mexico, South Korea and Bahrain, among other territories.
Suzano expanded its position in Brazil’s toilet paper sector through the 2023 acquisition of Kimberly-Clark’s local tissue assets and brands.
More than 40 regional brands from Kimberly-Clark’s International Family Care and Professional businesses are to be transferred into the new entity.
In addition, Kimberly-Clark will sign a long-term licensing agreement enabling the venture to use international brands such as Kleenex, Scott, Cottonelle, WypAll, Viva and Kimberly-Clark Professional.
Earlier this month, the European Commission also granted unconditional clearance for Suzano’s purchase of Kimberly-Clark’s international tissue business.
