This year, the largest consolidation transaction in the global pulp and paper industry took another important step.

The merger of Fibria Celulose SA and Suzano Papele Celulose SA, the two largest pulp and paper groups in Brazil, was unconditionally approved by the Chinese Administration. The two companies have notified their respective shareholders and customers.

At the beginning of this year, Suzano defeated APP in the acquisition competition and finally reached a merger agreement with the shareholders of Fibria Group, with a total transaction volume of about 11 billion US dollars. However, due to the huge impact of the two companies on the world's broadleaf pulp market, the merger also needs to be approved by several major economies around the world.

On June 1 this year, the US Federal Trade Commission (FTC) took the lead in approving the deal, and China passed the permit.

Currently, the barriers to the merger are mainly from Europe and Brazil. According to media reports, the United States International Paper (IP) and the Indonesian RGE Group have submitted a petition to the Brazilian anti-monopoly investigation agency to participate in the anti-monopoly evaluation of the transaction.

In Europe, industry insiders say that if the two world's largest hardwood pulp producers merge, it will definitely have a negative impact on the European market.