Mergers and acquisitions
: case study of Portucel and Altri

  • António Maria de Paiva Brandão Nápoles Sarmento (Student)

Student thesis: Master's Thesis


The Portuguese pulp and paper market has currently two main players which are Altri (on the pulp side) and Portucel (on the paper side), however this is a small market if we compare it with others like the Scandinavian or the North American ones. This makes the global pulp and paper market a very competitive one with companies that are much larger than the ones at study, nonetheless both Altri and Portucel are recognized by their high quality products and brands. Not only that, both these two firms are always aiming at being more competitive and efficient by lowering their costs, and currently they are one of the most operationally efficient companies in the industry. This paper will aim to provide arguments for the merger between Altri and Portucel, the main one analyses the added value that could be created through this merger by consolidating the strengths of these two Portuguese players. In this way, literature in valuation and in M&A will be reviewed and used to give strong arguments to the standalone valuation and the synergies that may occur in from this merger. Altri’s has been found to be undervalued along 2011 with a 13% upside potential, with synergies amounting to EUR 29,73 million. Hence this gives a premium of 25% over Altri’s share price at 31-12-2013, the acquisition is expected to be paid entirely with cash.
Date of Award2 Jul 2013
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorPeter Iordanov Tsvetkov (Supervisor)


  • Mestrado em Gestão

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