Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Stock

Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

admin by admin
June 5, 2025
in Stock
0
Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Kimberly-Clark announced Thursday that it has reached an agreement with Brazilian pulp manufacturer Suzano to sell a controlling stake in its worldwide tissue business, valuing it at $3.4 billion.

According to Reuters, the purchase, which would result in a new joint venture, represents a significant step in the consumer products company’s ongoing effort to streamline operations and focus on higher-margin industries.

Deal structure and strategic intent

Under the terms of the agreement, Suzano will acquire a 51% interest in the newly established joint venture for approximately US$1.73 billion in cash.

Kimberly-Clark will hold the other 49% stake. The deal is expected to be closed by mid-2026 and is subject to customary closing conditions and regulatory approvals.

Suzano, the world’s largest pulp producer, will also have the option to acquire Kimberly-Clark’s remaining stake under unspecified conditions.

The joint venture will be registered in the Netherlands and will unite 22 manufacturing facilities in 14 regions, spanning Europe, Asia, the Middle East, and Central America.

Refocusing and margin stabilisation

Kimberly-Clark has been undergoing a business restructuring, reducing costs and streamlining operations, especially in its personal care and North America tissue segments.

The new venture with Suzano offers cost-effective raw materials and stable profits, according to the company.

Under the terms of the deal, Kimberly-Clark will provide assets from its international family care and professional business to the venture, including approximately 9,000 employees.

However, it will keep its US consumer tissue and professional businesses as well as its ownership stake in joint ventures in Mexico, South Korea, Bahrain, and some other markets.

Industry trend towards strategic reshaping

The decision is consistent with a larger industry trend, in which consumer product businesses are reorganising their portfolios to focus on faster-growing and more profitable categories.

Over the last year, corporations like as General Mills and PepsiCo have taken similar steps to adjust to changing market dynamics and increase their global presence.

In September, General Mills sold its North American yoghurt sector for $2.1 billion to focus on snacking and pet food, which have greater growth prospects.

One month later, PepsiCo paid $1.2 billion for Siete Foods, a tortilla-chip company, as it expanded its healthier food line.

Industry pressure due to costs and market volatility

Kimberly-Clark’s move to form the joint venture comes amid broader financial pressures. Huggies diaper producer lowered its full-year profit outlook in April, citing tariff-related costs of approximately $300 million.

The collaboration with Suzano is viewed as a means to protect against such unanticipated expenses by working with a vertically integrated pulp source.

Looking ahead

The deal is one of Kimberly-Clark’s largest strategic shifts in years and is representative of the company’s effort to realign all its business units around strengths.

But in the long run, the company seems well-positioned to capitalise on a streamlined international footprint and improved controls over factors driving profitability.

The initiative will strike a balance between maintaining Kimberly-Clark’s presence in the global tissue market despite volatility in input costs and consumer demand, and mitigating risk if the global economy slows as expected.

The post Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano appeared first on Invezz


Previous Post

Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

Next Post

Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

Next Post
Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
Top 4 catalysts for the Dow Jones and S&P 500 this week

Top 4 catalysts for the Dow Jones and S&P 500 this week

May 25, 2025
Here’s why the German DAX index is soaring today

Here’s why the German DAX index is soaring today

May 26, 2025
Denny’s set to close dozens more locations this year, though some openings planned too

Denny’s set to close dozens more locations this year, though some openings planned too

February 16, 2025
Retire with dividends: best covered call ETFs for income investors

Retire with dividends: best covered call ETFs for income investors

0
Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

0
As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Retire with dividends: best covered call ETFs for income investors

Retire with dividends: best covered call ETFs for income investors

June 5, 2025
Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

June 5, 2025
Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

June 5, 2025
Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

June 5, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Retire with dividends: best covered call ETFs for income investors

    Retire with dividends: best covered call ETFs for income investors

    June 5, 2025
    Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

    Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

    June 5, 2025
    Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

    Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

    June 5, 2025
    Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

    Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

    June 5, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved