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

Nine Dragons Paper (Holdings)

20/05/2022 17:23

(Adds statements from RGE, JPMorgan)
    SAO PAULO, May 20 (Reuters) - Kimberly-Clark Corp  KMB.N  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  JPM.N  to reassess its
business in the region.
    Though a price tag has yet to be decided, market estimates
suggest Kimberly-Clark'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  SUZB3.SA , Chile's
CMPC-owned  CMPC.SN  Softys, Nine Dragons Paper  2689.HK , Oji
Holdings Corp  3861.T , 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  KIMBERA.MX . 
    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.
    JPMorgan declined to comment.
    Kimberly-Clark and all other companies named by Valor did
not immediately respond to Reuters requests for comment.

 (Reporting by Gabriel Araujo; Editing by Kirsten Donovan and
Chris Reese)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))