DS Smith confirms proposal by International Paper, continues talks with Mondi
One of the world's top packaging groups, International Paper has confirmed a proposal to buy DS Smith. The announcement comes after rival Mondi reached an agreement in principle for a takeover of DS Smith earlier this month.
28 Mar 2024 | By Abhay Avadhani
International papers takeover of D S Smith raises possibilities of bidding war with Mondi (Photo credits: D S Smith)
International Paper Company has confirmed that it is in discussions regarding a possible offer to acquire DS Smith, despite Mondi and DS Smith reaching an agreement in principle on the key financial terms of a deal earlier this month.
In a statement issued on 26 March, the US company International Paper confirmed that it has made an all-equity proposal to acquire the entire issued share capital of London-headquartered DS Smith.
This was the day prior to the commencement of the offer period in respect of DS Smith, and just before the approach by Mondi was made public.
A packaging pundit who spoke to WhatPackaging? magazine said. "If the deal is inked, It would significantly strengthen the combined corrugated packaging business in Europe with greater customer offerings; and create the opportunity to integrate the mill and box networks."
It would also balance the paper positions and optimise the supply chains of the respective companies in Europe and the US; “enhance value creating solutions for global customers in attractive fast-moving consumer goods and e-commerce segments”; and drive significant synergies including higher integration, commercial and operational improvements, and economies of scale across sourcing, supply chain and administration.