Link: Chile’s Copec in talks to buy pulpmaker Eldorado Brasil
(Sao Paulo/Santiago, June 19, 2017) A unit of Chile’s Empresas Copec SA is in talks to buy a controlling stake in Brazil pulpmaker Eldorado Brasil Celulose SA, whose controlling family ensnared in a corruption scandal put it on the block after signing a plea deal with prosecutors.
In a Friday securities filing, Copec and unit Arauco said they signed a non-disclosure agreement with Eldorado with the purpose of exploring a possible investment, without elaborating further. Earlier in the day, a person involved in the process told Reuters that Copec had already placed a bid for Eldorado.
According to the person, who asked for anonymity as terms of the bid remain private, Eldorado is also a target of Brazilian rivals Suzano Papel & Celulose SA and Fibria SA , which were lured by potentially significant cost savings from an acquisition. …
For years, family ownership of Brazilian pulp and paper companies has hindered a consolidation, as owners have resisted sharing control.
Just seven pulp and paper M&A deals have taken place in Brazil since the start of last year, compared with 11 each in Sweden and Indonesia and 54 in the United States, according to Thomson Reuters data.
To read complete report Go To: Chile’s Copec in talks to buy pulpmaker Eldorado Brasil (Source: Reuters)
Cover Image: Eldorado Brasil Celulose S/A