The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Brazilian company Aracruz Celulose S.A. (Aracruz) by the Brazilian company Votorantim Group (Votorantim), a company with interests in a diversified portfolio of industrial and financial activities. Aracruz is mainly active in the production of pulp and wood products and, through its affiliate Votorantim Celulose e Papel S.A. and its stake in Aracruz, Votorantim is also active in the pulp and paper markets. Despite a horizontal overlap in the pulp market, the Commission’s investigation confirmed that the parties combined market share will remain well below 15% on the global and EEA pulp market. Under any reasonable narrower product market definitions, the merged entity would also continue to face several strong, effective competitors after the proposed transaction.