Brazil’s Suzano buys forestry assets for $376 million By Reuters

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<p>SAO PAULO (Reuters) -Brazilian pulp and paper company Suzano has acquired certain forestry assets from two special-purpose firms managed by BTG Pactual Timberland Investment Group, according to a securities filing.</p>
<p>The deal was valued at 1.826 billion reais ($375.7 million) and requires regulatory approval, Suzano said in the filing late on Saturday.</p>
<p>The target companies own approximately 70,000 hectares of land in the state of Mato Grosso do Sul, in a region where Suzano already has operations. Some 50,000 hectares of the acquired land are considered &#8220;usable,&#8221; Suzano said, adding that the area is planted with eucalyptus trees of varying ages.</p>
<p>The transaction takes place only days after rival Klabin announced the acquisition of land and forests in Parana state from a Chilean seller, for $1.16 billion. That deal took the market by surprise and aims to reduce dependence on third-party wood.</p>
<p>Suzano will pay the agreed value in cash on the deal&#8217;s closing date in 2024. The amount will be converted into dollars if the transaction closes after March 31, it added. </p>
<p>The acquisition price may be adjusted to reflect the condition of the targeted assets at the closing date, as is customary in this type of operation, Suzano said. </p>
<p>In a separate filing on Saturday, Suzano raised its investment projection for 2024 from 14.6 billion reais to 16.5 billion reais.</p>
<p>($1 = 4.8605 reais)</p>
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