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The Final Word by Steve Roush
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Ladies and gentlemen, since we spoke last month, Eldorado Brasil, a major pulp producer, has reportedly been sold.

The company has been on the block for a bit now since its controlling shareholders got ensnared in a corruption probe.

It was reported back in August that talks for Eldorado between J&F Investimentos, which owns 81 percent of the company, and Chilean pulpmaker Empresas Copec SA sank due to price disagreements, and that three competing offers -- including one from Asia Pulp & Paper -- reportedly emerged as a result.

However, APP and its parent Sinar Mas Group denied they were planning to buy Eldorado Brasil, saying in a statement, "We would like to inform you that Asia Pulp and Paper (APP) is not acquiring Eldorado Brasil. However, Brazil remains an important market for us and we may explore the possibilities of further investment in the future."

Then over the weekend, J&F accepted a proposal from Netherlands-based Paper Excellence to buy Eldorado for 15 billion reais ($4.7 billion), including debt. We were the first pulp and paper industry media group to report this over on Nip Impressions.

The companies said in a statement that the transaction would take 12 months to complete, and Paper Excellence, controlled by the owners of Indonesia's Asia Pulp & Paper Co Ltd, would fully assume Eldorado's debt of almost 8 billion reais.

The purchase means that Paper Excellence will add 1.7 million tons of pulp to its annual production, which currently stands at 2.3 million.

"We always had Brazil on our radar for being a country with a differentiated position in the global scenario of the sector," said the company, which also has operations in Canada and Europe.

Steve Roush is Vice President, Publisher and Editor and in charge of the International Desk at Paperitalo Publications. He can be reached by email at steve.roush@taii.com.


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