Shareholders Approve Aracruz and VCP Merger

The merger of Aracruz Celulose and Votarantim Celulose & Papel (VCP), two of Brazil's major pulp and paper companies, was approved by shareholders on September 15. The merged company will control almost one-third of the world's eucalyptus-pulp market. The deal was first announced on August 6 when VCP said that it would pay BRL2.7bn (US$1.5bn) to Arapar to acquire a 28% stake in Aracruz, doubling its stake to 56%. One of Aracruz' major shareholders, Arainvest Participacoes, which holds a 28% stake in the company, has agreed to share control of the combined company with Votarantim Group and will pay BRL530mn

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