International Paper Secures EU Approval for DS Smith Acquisition

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The all-share merger between DS Smith Plc and International Paper Company has reached a critical milestone.

On January 24, 2025, the European Commission granted Phase I clearance for the transaction, moving the deal one step closer to completion.

The merger, initially announced in April 2024, is set to create a global leader in sustainable packaging solutions, with a focus on the North American and EMEA regions. The combination will be implemented through a Court-sanctioned scheme of arrangement under the UK Companies Act. If all conditions are met, DS Smith shareholders will receive shares in International Paper, which will be fully integrated into the company’s portfolio.

However, the clearance is conditional on the divestment of specific box plants in France, Portugal, and Spain. Despite this, International Paper remains confident that the divestment will proceed smoothly and does not expect it to affect the overall timeline for the merger.

Andrew Silvernail, spokesperson for International Paper, expressed optimism about the merger: “These are attractive sites, and we’re confident we’ll find a suitable buyer. We’re excited to reach this significant milestone and look forward to the combined entity’s future success in the packaging industry.”

With the Court Hearing set for January 30, 2025, and the expected effective date of the merger on January 31, 2025, the transaction is on track, pending the final Court sanction. The completion of the merger will require final regulatory approvals and the satisfaction of any remaining conditions outlined in the Scheme Document.

As the deal progresses, further announcements will be made to keep stakeholders informed of any changes to the expected timetable.

Link to original press release from International Paper