Investing.com -- Brazil's Suzano received unconditional European Union antitrust approval on Monday for its $3.4 billion joint venture with U.S. diaper and tissue maker Kimberly-Clark, according to a European Commission statement.

The approval represents progress for the agreement announced in June last year. Under the terms, Suzano will acquire a 51% stake in Kimberly-Clark's international tissue business, which includes the Kleenex brand.

The transaction remains under review by the UK watchdog.

Regulators have increased scrutiny of corporate deals in recent months as they weigh consumer interests alongside geopolitical considerations, sustainability factors, and pressure to adopt a more permissive approach that would enable the formation of European champions.

The global paper industry is undergoing consolidation as companies address declining demand and structural overcapacity.