Brazil's Suzano, the world's largest pulp producer, is set to receive unconditional approval from EU antitrust regulators to proceed with its $3.4 billion tissue paper joint venture with U.S. consumer goods giant Kimberly-Clark.

Informed sources indicate the European Commission will greenlight the deal following a preliminary review concluding on May 11, having identified no competition concerns. The acquisition will grant Suzano a 51% stake in Kimberly-Clark's international tissue business, including well-known brands such as Kleenex, Scott, and Cottonelle.

The joint venture will consolidate 22 production facilities across 14 countries spanning four continents, with operations extending across Europe, Asia, the Middle East, South America, Central America, Africa, and Oceania. The agreement also provides Suzano with a call option to acquire the remaining 49% stake held by its partner in the future.

This regulatory decision comes as the global paper industry faces a wave of consolidation amid declining demand and structural overcapacity. Concurrently, surging energy, fuel, and freight costs exacerbated by conflict in the Middle East have significantly increased operating pressures for consumer goods manufacturers.

Notably, the UK's Competition and Markets Authority (CMA) initiated its own separate investigation into the transaction in March, with a ruling expected by May 28. The European Commission and the companies involved have declined to comment on the matter.

Successful completion of this deal would mark a significant strategic expansion for Suzano from pulp production into finished consumer goods, substantially strengthening its competitive position in the global tissue market.