Chilean forestry group CMPC said late on Tuesday it reached an agreement with Brazil's Aracruz to buy one of its business units for $1.4 billion.

In a statement to Chile's exchange regulator, CMPC said it has signed a memorandum of understanding with Aracruz to buy its unit, Guaiba, located in the southern Brazilian state of Rio Grande Do Sul.

The acquisition would be one of the largest ever for a Chilean company even as the country's economy still reels from the ravages of the global financial storm.

Guaiba has cellulose, forestry, paper and wood businesses that includes a plant to process cellulose and another to produce paper, CMPC said.

The deal also includes 212,000 hectares of land of which 60 percent is planted with eucalyptus trees.

CMPC said the final acquisition agreement will be signed in coming weeks and that the sale price could be subject to adjustments. (Reporting by Alonso Soto; Writing by Tiffany Wu; Editing by Lisa Von Ahn, editing by Dave Zimmerman)