A bold consolidation plan aimed at integrating the Brazilian plants of leading panel makers Masisa do Brasil Ltda and Tafisa Brasil SA has unexpectedly collapsed, weeks after the deal was made.
Back in January, Sonae Indústria announced that top South American panel maker Masisa SA had bought a 37% stake in its Brazilian Tafisa MDF, MDP (medium density particleboard) and laminated flooring operation at Piên for US$70m (WBPI, issue 1, 2008, p12).
Less than six months on, Sonae and Masisa say the deal is off. Sonae referred to the partners’ inability to reach “a satisfactory agreementover detailed aspects and “essential conditionsof the proposed merger.
A clause in the January agreement allowed Masisa later to sell its new Tafisa Brasil holding to its partner Sonae. As a result of the deal’s collapse, Masisa is
exercising its right to sell out, leaving Sonae with 100%
control of Tafisa Brasil.
