Clearwater Paper Shares Surge on Suzano's Potential Acquisition Offer

Investing.com -- Clearwater Paper Corp. (NYSE:CLW) shares rose 15% on news that Brazilian Suzano SA is considering acquiring the company. According to Bloomberg, Suzano is working with an advisor to reach a deal, but no agreement has been finalized yet and it may not occur.

Clearwater Paper, a Spokane, Washington-based producer of pulp and paperboard products, had seen its market value decline by 31.6% year-to-date before this surge. The company's market value was $409 million at the last close before the news broke. The potential acquisition comes as Suzano seeks to expand its presence in the U.S. market, being the largest hardwood market pulp supplier in North America. Suzano recently acquired two paperboard mills in Arkansas and North Carolina for a deal worth $110 million.

The news of a possible takeover caused Clearwater’s stock to rise by as much as 19% in after-hours trading on Thursday. However, both Suzano and Clearwater declined to comment on the matter. It has been reported that the discussions are confidential and there is no guarantee that a purchase will be finalized.

Investors responded to the news by buying shares in anticipation of a potential deal that is likely to offer a premium above Clearwater Paper's current market value. The company's stock movements reflect investor optimism regarding the likelihood of a takeover. This situation could provide significant momentum for Clearwater's business and potentially create synergies with Suzano’s existing operations.

As the market awaits further developments, the stock's performance is likely to continue being influenced by new information related to the potential acquisition. The situation remains dynamic, and investors are advised to monitor for official announcements or updates regarding negotiations between Suzano and Clearwater Paper.