The European Commission has unconditionally approved Suzano’s proposed acquisition of Kimberly-Clark IFP under the EU Merger Regulation, concluding that the transaction does not raise competition concerns within the European Economic Area (EEA).
Suzano is one of the world’s leading producers of bleached eucalyptus kraft pulp (BEKP), while Kimberly-Clark IFP includes Kimberly-Clark Corporation’s International Family Care & Professional business operations across Europe and several other global regions.
The transaction involves tissue products for personal and professional use, including toilet paper, tissues, paper towels and wipers.
Commission examined pulp and tissue market impact
The European Commission focused its investigation on the vertical relationship between Suzano’s pulp activities and Kimberly-Clark IFP’s tissue business. BEKP is a key raw material used in tissue production, and the Commission assessed whether the acquisition could affect competition in both pulp supply and tissue manufacturing markets.
Following discussions with market participants and analysis of the supply chain, the Commission concluded that competing tissue producers in the EEA will continue to have sufficient access to pulp supplies. According to the investigation, the European BEKP market remains diversified and well supplied, with multiple global and European producers operating in the region.
No concerns over supply restrictions
The Commission stated that tissue producers routinely source pulp from several suppliers and face no significant barriers when switching suppliers. As a result, the investigation found that Suzano would neither have the ability nor a commercial incentive to restrict BEKP supplies or worsen commercial conditions for competing tissue manufacturers.
The Commission also noted that Kimberly-Clark IFP’s relatively limited market position within the EEA would not justify such a strategy from a business perspective.
Transaction cleared after Phase I review
The acquisition was officially notified to the European Commission on 31 March 2026 and was cleared during the standard Phase I review process.
Suzano, headquartered in Brazil, is a major global supplier of BEKP and also produces tissue products in the Brazilian market.
Kimberly-Clark IFP, incorporated in the Netherlands for the purpose of the transaction, includes Kimberly-Clark’s tissue operations across Europe, Africa, South America, Central America, Puerto Rico, the Middle East, Asia and Oceania.
The approval represents another important step in the completion of the transaction between the two companies.
