Arauco signs agreement to buy Masisa do Brasil

Arauco do Brasil, a Brazilian subsidiary of Arauco, reached an agreement with the Chilean company Masisa to buy all the corporate rights of Masisa’s subsidiary Masisa do Brasil.

 

The Transaction price will amount to about US$102.8 million, from which certain amounts agreed on in the contract shall be deducted, so the final price Arauco will pay Masisa will be approximately US$58.1 million.

 

The main assets of Masisa Brasil entail two industrial complexes at Ponta Grossa (Paraná) and Montenegro (Río Grande do Sul), with an MDF line having an installed capacity of 300,000 m3 a year, an MDP line with an installed capacity of 500,000 m3 a year, and four melamine coating lines with a total installed capacity of 660,000 m3 a year. If this Transaction goes through, Arauco will have an installed capacity of around 10 million m3, consolidating its position as the number two producer in the world.

 

The completion of this Transaction is subject to a series of prior conditions that are customary for these kind of operations, with the most important being authorization by the free competition authority in Brazil (Conselho Aministrativo de Defensa Económica or “CADE”). Arauco believes the Transaction should be completed by no later than the first two months of 2018.