Wednesday, August 24, 2016 11:00 am

BRAZIL (From IstoÉ Dinheiro) -- The Administrative Council for Economic Defense (Cade) approved without restrictions, the partial spin-off of the assets of Florestal Vale do Corisco, company currently controlled by Klabin, with a 51% stake in the share capital, and the Arauco Forest with 49% . The order with the decision was published in the Official Gazette (DOU) on Friday, 19 Aug.

Cade opinion on the operation informs the business, because it is split, it will not change the market structure. "The assets that were being administered jointly by Klabin and Arauco since the acquisition of Vale do Corisco in 2011 will be administered individually by the parties according to the particular division for them," he quotes the document.

The operation - according to the document - tends to be pro-competitive as in the end result in both companies commercializing products independently, instead of doing it together.

Chile's Arauco operates in reforestation segments, logs, wood paneling, formaldehyde, impregnated paper, lumber, thermosetting resins, and wood laminate floors. National Klabin operates in the production of pulp, paper, corrugated boxes and industrial sacks and also the forestry sector, with wood logs sales to the lamination and lumber industry.