SAO PAULO, June 26 (Reuters) - Brazilian pulpmaker Suzano (SUZB3.SA) said on Wednesday it has terminated talks to buy International Paper (IP.N), adding the U.S.-based firm did not engage with the highest price it was willing to pay.
Suzano, the world’s largest pulp manufacturer, said last month it was interested in assets owned by International Paper, after Reuters reported the Brazilian company had approached the U.S. firm to express interest verbally in an all-cash acquisition worth $15 billion.
In Wednesday’s filing, Suzano said “it has reached what it believes to be the maximum price for the transaction to generate value” for itself, “without engagement from the other party.”
“Therefore, in observance of its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper,” Suzano said.
International Paper did not immediately respond to request for comment outside normal business hours.
Reuters reported in May that Suzano had been in talks with advisers about sweetening an offer for International Paper.
A deal between the companies would be conditioned on International Paper abandoning its recently announced agreement to acquire British packaging firm DS Smith (SMDS.L), for $7.2 billion, sources previously told Reuters.
Shares from Suzano are down 14.6% since the day before news of the talks broke until Wednesday’s closing, while International Paper shares are up 26.2% in the same period.
Source: Reuters Suzano termiantes talks to buy international paper