30/11/2018 (Agence Europe) – The European Commission has conditionally approved the acquisition of Fibria by Suzano. The two Brazilian companies are the world's leading suppliers of bleached eucalyptus kraft pulp (BEKP), used for paper making. The Commission was concerned that the transaction would in particular significantly reduce competition in the BEKP market in the European Economic Area (EEA). In response to the institution's concerns, Suzano suggested terminating an off-take agreement between Fibria and Klabin (another Brazilian BEKP producer), which provided for an exclusive sales distribution of BEKP produced by Klabin outside South America, and transferring the necessary assets and personnel to Klabin so that it could sell BEKP in the EEA independently. Subject to full compliance with these commitments, the Commission gave the operation the green light. (LT)