Suzano SA ( SUZ ) has decided to abandon its pursuit to acquire International Paper Co. ( IP ) , one of North America’s largest recyclers and a global producer of packaging, pulp and other fiber-based products. This news triggered a nearly 15% drop in International Paper’s shares during pre-market trading on Thursday.

Suzano’s decision was prompted by International Paper’s rejection of its advances, Bloomberg reported on Thursday. Instead, International Paper ( IP ) has chosen to focus on its own merger plans with a different competitor.

At the time of writing, International Paper’s shares were trading at $39.67, a significant drop from Wednesday’s close of $46.61, according to Benzinga Pro.

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Suzano, a Brazil-based company, had initially proposed a $15 billion acquisition offer to International Paper ( IP ). However, the deal was based on the condition that International Paper ( IP ) abandon its plans to acquire British packaging firm DS Smith.

Suzano stated that it was unable to engage International Paper ( IP ) in serious discussions and was not willing to increase its offer. This announcement led Suzano’s U.S.-listed shares to see an 11.94% jump in the pre-market on Thursday.

Suzano had hoped to negotiate on “private, confidential and amicable terms,” as per its statement. However, as this was not feasible, the company decided to terminate the talks.

This development simplifies International Paper’s plan to acquire DS Smith Plc, a deal that is expected to close in the fourth quarter. If Suzano’s acquisition had been successful, the world’s largest pulp producer would have had the chance to expand internationally and diversify into the more stable packaging sector. However, there were investor concerns about Suzano’s ability to maintain its investment grade if it took on additional debt for the deal.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari