International Paper, Brazilian company to form JV

MEMPHIS, Tenn. -- International Paper Co. said Wednesday it is forming a new joint venture with a unit of Brazil's Grupo Orsa to support its global packaging business.

International Paper, which is based in Memphis, Tenn., said it will invest 952 million Brazilian real, or about $470 million, for a 75 percent stake in the joint venture with corrugated packaging producer Jari Celulose, Embalagens e Papel S/A.

Jari will transfer its industrial packaging assets to the new company, including three containerboard mills and four box plants. Its pulp and forestry businesses will be kept separate.

The companies expect to finalize the joint venture early in the first quarter of 2013 subject to government approvals and closing conditions.

Shares of International Paper fell 40 cents to end at $36.38.