Brazil's leading pulp maker Votorantim Celulose e Papel plans on buying a 28 percent voting stake in rival paper firm Aracruz Celulose for $370 million.
The deal between a subsidiary of VCP and a unit of mining giant Anglo American Plc will give VCP a 12.3 percent equity stake in Aracruz, the world's leading producer of bleached eucalyptus market pulp.
"This transaction represents an important step for VCP to consolidate itself in the world paper and pulp market," said VCP's Superintendent Director Raul Calfat in a statement.
The deal should be closed on Nov. 1.
Founded in 1972, Aracruz owns 356,000 acres of eucalyptus plantations in the Brazilian states of Bahia and Espirito Santo. It owns the world's largest pulp mill with an annual capacity of 1.3 million metric tons. Reuters
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