VCP Buys Stake in Aracruz Brazilian pulp and paper producer
Votorantim Celulose e Papel (VCP), part of the Votorantim
conglomerate, may have taken the first step toward a merger
with Aracruz Celulose. The company is paying $370 million in
cash for a stake in Latin America's largest pulp exporter. The
deal was made in support of VCP's growth strategy. It already
owns two wood pulp plants and three paper plants in Brazil and
currently has the capacity for producing 800,000 metric tons of
pulp a year. The addition of Aracruz, which currently produces
1.3 million metric tons a year and may have two million tons of
capacity in a year, will eventually turn their combined pulp
production into one of the world's largest. In early October,
VCP acquired Mondi Internacional's 12.3% stake in Aracruz, and
28% of the company's voting shares. The deal is expected to
close at the...
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