BRUSSELS (AP) -- The European Union cleared Tuesday the proposed acquisition of paper maker Aracruz by conglomerate Votorantim in an all Brazilian deal worth $1.1 billion.
The EU said in a statement that "the transaction would not significantly impede effective competition" in Europe.
The deal was planned for last year but was delayed after Aracruz was hit with $2.1 billion in losses on foreign exchange markets after Brazil's currency fell sharply against the dollar amid the world financial crisis.
Under terms of the deal announced to regulators, Votorantim Celulose e Papel SA's stake in Aracruz Celulose SA will increase to 56 percent.
