Commission unconditionally approves Suzano’s acquisition of Kimberly-Clark IFP

This article is brought to you in association with the European Commission.

The European Commission has unconditionally approved, under the EU Merger Regulation, the proposed acquisition by Suzano S.A. (‘Suzano‘) of Kimberly Clark IFP NewCo B.V. (‘Kimberly-Clark IFP‘). The Commission concluded that the transaction would raise no competition concerns in the European Economic Area (‘EEA’).

Suzano is a leading global producer and supplier of wood pulp, specifically of bleached eucalyptus kraft pulp (‘BEKP’). Kimberly-Clark IFP consists of Kimberly-Clark Corporation’s International Family Care & Professional (‘IFP’) business located in Europe and several other regions in the world. The IFP business covers the production and sale of tissue products for personal and professional use, such as tissues and toilet paper.

The Commission’s investigation

BEKP, which Suzano supplies globally, is a main component for the production of tissue paper products, by companies like Kimberly-Clark IFP. The Commission therefore investigated the vertical link between the companies’ activities and the impact of the proposed transaction on the markets for the supply of BEKP, and the production of tissue paper products.

In its investigation, the Commission gathered extensive evidence from the companies and third-party market participants at both levels of the supply chain. On that basis, it found that the transaction would not significantly reduce competition in the internal market.

In particular, competing tissue producers in the EEA will continue to have access to sufficient BEKP supplies, despite Suzano’s position as the leading supplier globally and in the EEA. Suzano holds a moderate market share in the EEA and competes with a substantial number of credible alternative suppliers. The market investigation showed that the EEA BEKP market is large, diverse and well-supplied, comprising both global suppliers, who serve the EEA through direct shipments,and EEA-based producers. Given the current spare capacity in the EEA BEKP market, the Commission found that EEA-based tissue producers would retain sufficient alternative supply options even if Suzano were to restrict supplies or worsen terms for competing tissue producers.

Moreover, the market investigation confirmed that EEA tissue producers, who routinely source BEKP from multiple suppliers, face no significant barriers for switching BEKP suppliers, which reduces the risk that tissue producers competing with Kimberly-Clark IFP could be disadvantaged, for example through higher BEKP prices.

Finally, the Commission found that even if the merged entity disadvantaged its tissue competitors, Kimberly-Clark IFP’s limited market position in the EEA would prevent it from profitably increasing its sales and hence not justify such a strategy. The Commission therefore found that the merged entity would not be in a position or have a commercial incentive to restrict other EEA tissue producers’ access to BEKP.

The Commission therefore concluded that the proposed transaction would not raise competition concerns on any of the markets examined in the EEA,and cleared the transaction unconditionally.

Companies and products

Suzano, headquartered in Brazil, is a global producer and supplier of BEKP. In Brazil, Suzano also produces and supplies tissue paper products. 

Kimberly-Clark IFP, incorporated in the Netherlands, is a newly formed subsidiary of Kimberly-Clark Corporation created for the purposes of this transaction. Kimberly-Clark IFP consists of the assets for the production and sale of tissue products for personal (such as tissue and paper towels) and professional use (such as toilet paper and wipers) of Kimberly-Clark Corporation located in Europe, Africa, South America, Central America, Puerto Rico, Middle East, Asia and Oceania.

Merger control rules and procedure

The transaction was notified to the Commission on 31 March 2026.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

More information will be available on the Commission’s competition website, in the public case register under the case number M.12078.