Brazil-based Suzano, the world's largest pulp producer, is set to receive full, unconditional approval from EU antitrust authorities for its $3.4 billion joint venture with U.S. consumer goods company Kimberly-Clark, according to individuals with direct knowledge of the matter.
The transaction, announced in June of last year, will give Suzano a 51% stake in Kimberly-Clark's international tissue business - the unit that markets well-known tissue products such as Kleenex, Scott and Cottonelle. Kimberly-Clark will retain a 49% stake in the joint venture, and Suzano holds a call option to acquire its partner's stake.
People familiar with the process said the European Commission, acting as the EU competition enforcer, does not see competition concerns following its preliminary review and will issue an unconditional clearance once the review period concludes on May 11. The EU enforcement agency declined to comment. Suzano and Kimberly-Clark did not provide immediate comments when contacted.
The proposed joint venture would encompass 22 manufacturing facilities spread across 14 countries, covering regions in Europe, Asia, the Middle East, South America, Central America, Africa and Oceania. That operational footprint underpins the scale of the deal and explains why regulators in different jurisdictions are reviewing the transaction.
Separately, the United Kingdom's Competition and Markets Authority opened an investigation in March and has scheduled a decision for May 28. The UK probe remains active while the EU clearance moves toward an unconditional outcome.
The transaction comes amid broader consolidation in the global paper industry, as firms confront declining demand and structural overcapacity. The agreement also arrives at a time when consumer goods manufacturers are coping with rising energy, fuel and freight costs that the people familiar with the matter linked to the war in Iran.
Regulatory scrutiny of such transactions has intensified in recent months. Authorities have tried to weigh consumer interests alongside geopolitical considerations, sustainability arguments and calls from some quarters for a more permissive stance to help national or regional champions emerge. The EU's apparent lack of competition concerns in this case contrasts with ongoing review activity elsewhere, illustrating the patchwork of outcomes companies can face when seeking cross-border approvals.
Should the UK regulator clear the deal or conclude its investigation without remedies, the transaction would proceed with Suzano as the majority owner of the international tissue business and Kimberly-Clark as minority partner. The deal structure and the option arrangement were part of the original agreement announced last year.
Context and market implications
For the global paper and consumer goods sectors, the JV represents continued consolidation as companies seek to align capacity with softened demand. Energy, transport and input-cost pressures cited in the review process also bear on margins for manufacturers and the economics of running widespread production networks. The split regulatory picture - swift movement in the EU versus an active UK inquiry - highlights how cross-border deals can face differing outcomes across jurisdictions.