LONDON (From news reports) -- Britain's competition watchdog ​said on ‌Friday it has ​opened a ​phase 1 investigation ⁠into ​a $3.4 billion joint venture ​between Brazilian pulp producer Suzano and ​consumer goods giant ‌Kimberly-Clark.

The ⁠Competition and Markets Authority (CMA) has ​a ​May ⁠28 deadline to ​announce ​a ⁠decision from its ⁠phase ​1 investigation.

Kimberly-Clark and Suzano proposed a $3.4B joint venture that would combine Kimberly-Clark's international family care and professional tissue business with Suzano's manufacturing scale and operational expertise. Under the deal, Suzano would own 51% and Kimberly-Clark 49%, with Suzano paying about $1.734B in cash at closing. The venture would make, market, and distribute tissue products such as toilet paper, paper towels, napkins, and facial tissues in more than 70 countries, and it would include about 9,000 employees and 22 manufacturing facilities.

Kimberly-Clark's brands would be licensed to the new company, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional. As part of the arrangement, Kimberly-Clark would keep its U.S. tissue and professional businesses, along with certain existing joint ventures in markets like Mexico, South Korea, and Bahrain. The venture would be governed by a five-member board with three directors appointed by Suzano and two by Kimberly-Clark.

The joint venture is expected by the companies to close in mid-2026 if it lands the required regulatory approvals.