The European Commission announced on Monday, May 11, 2026, that it has granted unconditional antitrust approval for a $3.4 billion transaction between Brazilian pulp producer Suzano S.A. and U.S.-based consumer goods company Kimberly-Clark.

The decision clears a primary regulatory hurdle for the deal, under which Suzano will acquire a 51% majority stake in Kimberly-Clark’s International Family Care & Professional (IFP) business.

The European Commission’s investigation focused on the vertical integration of Suzano, the world’s largest producer of bleached eucalyptus kraft pulp (BEKP), and Kimberly-Clark’s tissue production.

Following a Phase I review, the Commission concluded that the deal would not significantly impede competition within the European Economic Area (EEA) for several reasons:

• Alternative Supply: Competing tissue producers will continue to have access to a diverse range of global pulp suppliers.
• Market Share: Suzano holds a moderate market share within the EEA pulp market, and regulators found no evidence of intent to restrict competitors' access to raw materials.
• Limited Impact: Kimberly-Clark’s IFP business holds a limited market position in the EEA, reducing the risk of inflated consumer prices.

The joint venture, to be headquartered in the Netherlands, includes Kimberly-Clark’s international assets across approximately 70 countries.

• Assets: The deal encompasses 22 manufacturing facilities and approximately 9,000 employees.
• Brands: The entity will manage brands including Kleenex, Scott, Cottonelle, WypAll, and Viva under long-term licensing agreements.
• Exclusions: Kimberly-Clark will maintain full ownership of its North American operations and specific joint ventures in Mexico, South Korea, and Bahrain.

The transaction comes during a period of consolidation within the global paper and tissue industry as manufacturers manage fluctuating energy costs and structural overcapacity. For Suzano, the move scales its consumer goods division following its 2023 acquisition of Kimberly-Clark’s Brazilian tissue assets.

For Kimberly-Clark, the divestment is a critical component of its broader capital allocation strategy. The company intends to use the proceeds from the Suzano deal to help finance its pending $48.7 billion acquisition of Kenvue Inc.

While the European Union has cleared the deal, it remains subject to review by the UK’s Competition and Markets Authority (CMA), with a decision expected by May 28, 2026. Kimberly-Clark expects both the Suzano joint venture and the Kenvue acquisition to finalize in the second half of 2026.

Read more about the European Commission decision: https://ec.europa.eu/commission/presscorner/detail/es/ip_26_1039