Suzano Acquires 70,000 Hectares in Mato Grosso do Sul for $375.7 Million

Summary

  • The transaction worth 1.826 billion reais ($375.7 million) involving Suzano needs regulatory approval.
  • The companies targeted hold about 70,000 hectares of land in Mato Grosso do Sul with 50,000 hectares considered “usable”.
  • Payment for the deal is scheduled in cash by Suzano for 2024. The sum will be transferred into dollars if the transaction is completed post-March 31.
  • The acquisition price may witness some alterations depending on the condition of the targeted assets at the closing date.

Details of the Transaction

In a recent filing, Suzano mentioned a deal valued at 1.826 billion reais ($375.7 million). This transaction awaits regulatory approval.

Details of the Companies Targeted

It is noteworthy that the target companies possess approximately 70,000 hectares of land in Mato Grosso do Sul. Suzano already has operations in this region. Further, out of the total land, around 50,000 hectares are termed as “usable”. This adequately fertile area is populated with eucalyptus trees of different ages, according to Suzano.

Payment and its Details

Suzano states that the payment decided would be provided in cash on the closing date of the deal in 2024. Additionally, the mentioned sum will be transferred and paid in dollars if the transaction is completed after March 31.

Possible Change in Acquisition Price

Suzano remarked that the price for the acquisition might witness certain alterations. This change would entirely depend on the condition of the targeted assets by the closing date, maintaining common practice in such operations.

As per the current exchange rate, $1 is equal to 4.8605 reais.

Impact on Forex or Trading

This transaction set to conclude in 2024 could potentially influence foreign exchange markets and could have a notable effect on assets involving the Brazilian real and the U.S. dollar.

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