DS Smith agrees £5.8bn takeover deal with International Paper
Quote from VATcal on 16/04/2024, 18:19British packaging giant DS Smith has been acquired by US rival International Paper in a deal worth £5.8 billion. The all-share agreement, announced on April 16th, 2024, marks the culmination of a bidding war for DS Smith, which had previously agreed to a £5.1 billion offer from fellow Briton Mondi.
Under the terms of the deal, International Paper will hold roughly 66.3% of the combined company, with DS Smith shareholders owning the remaining 33.7%. This translates to a value of 415 pence per DS Smith share, representing a 47% premium on their February 7th closing price.
The deal is expected to create a global leader in sustainable packaging solutions, combining DS Smith's strengths in Europe with International Paper's reach in North America. The new company will be headquartered in Memphis, Tennessee, with a secondary listing on the London Stock Exchange to maintain a presence in Europe.
While the long-term impact on jobs remains unclear, International Paper has acknowledged the possibility of some job losses. However, they have pledged to maintain a “key presence” in London, suggesting DS Smith's existing European base will likely play a part in the merged company's operations.
This acquisition follows International Paper's successful intervention in the bidding war for DS Smith. In March, they outbid Mondi's initial offer, prompting DS Smith to accept their proposal. The deal is expected to bring about significant cost savings through the integration of the two companies' supply chains and mill networks.
Analysts believe the merger will position the new entity to capitalise on the growing demand for sustainable packaging solutions. Both DS Smith and International Paper are known for their focus on eco-friendly practices, and the combined company is expected to be a major player in this ever-evolving market.
British packaging giant DS Smith has been acquired by US rival International Paper in a deal worth £5.8 billion. The all-share agreement, announced on April 16th, 2024, marks the culmination of a bidding war for DS Smith, which had previously agreed to a £5.1 billion offer from fellow Briton Mondi.
Under the terms of the deal, International Paper will hold roughly 66.3% of the combined company, with DS Smith shareholders owning the remaining 33.7%. This translates to a value of 415 pence per DS Smith share, representing a 47% premium on their February 7th closing price.
The deal is expected to create a global leader in sustainable packaging solutions, combining DS Smith's strengths in Europe with International Paper's reach in North America. The new company will be headquartered in Memphis, Tennessee, with a secondary listing on the London Stock Exchange to maintain a presence in Europe.
While the long-term impact on jobs remains unclear, International Paper has acknowledged the possibility of some job losses. However, they have pledged to maintain a “key presence” in London, suggesting DS Smith's existing European base will likely play a part in the merged company's operations.
This acquisition follows International Paper's successful intervention in the bidding war for DS Smith. In March, they outbid Mondi's initial offer, prompting DS Smith to accept their proposal. The deal is expected to bring about significant cost savings through the integration of the two companies' supply chains and mill networks.
Analysts believe the merger will position the new entity to capitalise on the growing demand for sustainable packaging solutions. Both DS Smith and International Paper are known for their focus on eco-friendly practices, and the combined company is expected to be a major player in this ever-evolving market.
