Suzano Expected to Secure EU Approval for $3.4 Billion Kimberly-Clark Tissue Joint Venture

Brazil-based pulp producer Suzano is expected to receive unconditional European Union antitrust approval for its proposed $3.4 billion joint venture with U.S. consumer goods company Kimberly-Clark, according to sources familiar with the matter.

The transaction, announced in June last year, would see Suzano acquire a 51% stake in Kimberly-Clark’s international tissue business, which includes brands such as Kleenex, Scott and Cottonelle. Kimberly-Clark would retain a 49% stake, while Suzano would also hold an option to acquire the remaining share in the future.

Sources said the European Commission is expected to clear the deal following the conclusion of its preliminary review on May 11, as regulators do not currently identify competition concerns linked to the transaction.

The European Commission declined to comment. Suzano did not immediately comment, while Kimberly-Clark did not respond to requests for comment.

The joint venture would encompass 22 manufacturing facilities across 14 countries in Europe, Asia, the Middle East, South America, Central America, Africa and Oceania.

The transaction is also under review by the UK Competition and Markets Authority (CMA), which launched an investigation in March. A decision from the UK regulator is expected by May 28.

The proposed partnership comes amid broader consolidation in the global paper and tissue sector as companies respond to weaker demand and structural overcapacity. Manufacturers have also faced rising energy, fuel and freight costs in recent years.