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Kimberly-Clark planning to sell tissue paper assets in Brazil, Latin America -report

Published 05/20/2022, 08:18 AM
Updated 05/20/2022, 12:25 PM
© Reuters. The logo of Kimberly-Clark is seen in Maracay, Venezuela, July 10, 2016. REUTERS/Carlos Jasso
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SAO PAULO (Reuters) -Kimberly-Clark Corp is planning to sell its tissue paper assets in Brazil and Latin America, newspaper Valor Economico reported on Friday, saying the company is in talks with JPMorgan (NYSE:JPM) to reassess its business in the region.

Though a price tag has yet to be decided, market estimates suggest Kimberly-Clark (NYSE:KMB)'s assets are valued at between $800 million and $1 billion as a whole, with Brazil accounting for about $200 million, Valor said.

The U.S.-based company owns brands such as Kleenex and Neve.

Valor said Brazilian pulpmaker Suzano SA, Chile's CMPC-owned Softys, Nine Dragons Paper, Oji Holdings Corp, RGE and J&F Investimentos are among those interested in Kimberly-Clark's Brazilian assets, citing sources familiar with the matter.

Valor said the talks did not include its listed Mexico-based unit.

RGE, the local unit of Raja Garuda Emas, a Singapore-based pulp and paper, fiber and palm oil maker, said in a statement to Reuters it was unable to respond to M&A speculation in the marketplace.

But it added its Brazilian unit Bracell "is always on the lookout for attractive business opportunities which complement our businesses."

"RGE has recently identified tissue as a growth area, which alongside paper and paper board growth, is fueling global pulp demand. Latin America is a rapidly growing market and Bracell is committed to value added investments in the country," it said.

© Reuters. The logo of Kimberly-Clark is seen in Maracay, Venezuela, July 10, 2016. REUTERS/Carlos Jasso

JPMorgan declined to comment.

Kimberly-Clark and all other companies named by Valor did not immediately respond to Reuters requests for comment.

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