EU clears Suzano's acquisition of Kimberly-Clark's tissue business

Kimberly-Clark's paper mill in Epping, Germany. Photo: Kimberly-Clark

Published by

Markku Björkman - 1 Jun, 2026

The European Commission has granted unconditional approval for Brazilian pulp and paper producer Suzano’s planned acquisition of Kimberly-Clark’s international tissue business, clearing the transaction without requiring any remedies or additional competition measures within the European Economic Area (EEA).

The decision paves the way for Suzano to complete the takeover of Kimberly-Clark IFP NewCo B.V., a newly established entity that consolidates Kimberly-Clark’s International Family Care & Professional operations across Europe as well as several markets in Africa, Latin America, the Middle East, Asia and Oceania.

Operations spanning multiple regions

The acquisition will significantly expand Suzano’s presence further down the value chain by combining its position as one of the world’s largest producers of bleached eucalyptus kraft pulp (BEKP) with Kimberly-Clark’s tissue operations, which include toilet paper, facial tissues, paper towels and professional hygiene products.

The deal represents a strategic move for Suzano, allowing the company to strengthen its foothold in consumer products while maintaining its dominant position in the global pulp market.

EU examined competition concerns

The European Commission’s review focused primarily on the vertical relationship between BEKP production and tissue manufacturing.

Regulators assessed whether the transaction could limit competitors’ access to pulp supplies or weaken competition in the European tissue market. Following its investigation, the Commission concluded that the risks were limited.

According to the Commission, Suzano’s market share within the EEA remains moderate, while numerous alternative suppliers of BEKP continue to operate both within Europe and internationally.

The regulator also noted that the EEA pulp market has sufficient supply capacity and remains highly competitive, ensuring that tissue producers can maintain diversified sourcing options.

Limited ability to disadvantage rivals

The Commission further concluded that competing tissue manufacturers would face few obstacles if they needed to switch pulp suppliers.

As a result, it is considered unlikely that the merged company would be able to disadvantage competitors through higher pulp prices or restricted access to raw materials.

The investigation also found that Kimberly-Clark IFP’s relatively modest position in the European tissue market would limit the financial benefits of any attempt to favour its own downstream operations at the expense of rival manufacturers.

This reduced the likelihood that the merged entity would have either the incentive or the ability to distort competition.

Cleared in Phase I review

The transaction was formally notified to the European Commission on 31 March 2026 and was approved during the standard Phase I review process.

Such approvals typically indicate that regulators have not identified any significant competition concerns requiring an in-depth investigation.

The swift clearance reflects the Commission’s view that the acquisition will not significantly impede effective competition within the European market.

Strengthening Suzano’s global position

Headquartered in Brazil, Suzano is the world’s largest producer of bleached eucalyptus kraft pulp, a key raw material used in tissue manufacturing.

Through the acquisition, the company gains a larger presence in finished consumer products, while Kimberly-Clark’s international tissue operations gain access to one of the world’s leading pulp suppliers.

The transaction also highlights the ongoing consolidation within the global pulp and paper industry, where major producers continue seeking greater control over multiple stages of the value chain to improve efficiency, scale and market reach.

Source: European Commission, Paper Advance