VCP Takes Over Aracruz

Brazil’s Votorantim Celulose e Papel (VCP) has agreed to acquire a 28% stake it does not own of Aracruz, opening the way for the creation of one of the top two paper and pulp companies in the country, alongside Suzano. Grupo Votorantim, VCP’s parent, and Grupo Safra, a financial investor in Aracruz, will jointly control the shares in the new company with a 50% stake, while VCP will own the rest. The move follows a similar divestiture by the Lorentzen Group in August, which also held a 28% stake in Aracruz. Safra had the right of first refusal to the stake, but would have had to make a bid for an additional 28% were it to control Arazruz. It will now remain a financial investor in the company, to be operated by VCP. Safra will pay some BRL530m for its share in the new company. JPMorgan advised Safra, Credit Suisse advised Lorentzen Group, and Signatura-Lazard is advising Suzano. Estater advised VCP.