China Paper Holdings Ltd has joined the completion to buy Eldorado Brasil Celulose SA, Folha de São Paulo reports.

The Brazilian newspaper says the Chinese state-run company would be prepared to pay 16 billion reais (US$5.06 billion) for 100 percent of the Brazilian operator of pulp mills.

The report says Asia Pulp & Paper Group of Indonesia has bid 15 billion reais.

Also competing for Eldorado Brasil Celulose are Fibria Celulose SA of Brazil and an unidentified Asian bidder, Folha de São Paulo says.