The Controversial $15 Billion Acquisition of IP by Suzano and Its Implications for Finnish Companies

Finnish forest companies such as UPM and Stora Enso, both of which operate in Europe, have minimal overlap with the potential deal between Brazilian pulp producer Suzano and American International Paper (IP). The rumored acquisition would help Suzano diversify geographically and reduce China risk.

Suzano approached IP with a potential purchase offer of $15 billion, close to its market value. However, the large scale of the arrangement for Suzano raises questions about the synergy between the two companies. Despite this, some speculate that the deal could ultimately fall through due to concerns about its potential negative effects on the global market and skepticism from investors.

Antti Viljakainen, an analyst at Inderes, finds the rumored deal between Suzano and IP to be unusual and questionable. He suggests that it may eventually fall through due to concerns about its potential negative effects on the global market and lack of synergy between the two companies. If the deal were to materialize, it would have a consolidating effect on the global market but may not have revolutionary effects on Finnish companies.