International Paper Set for EU Green Light on DS Smith Acquisition

Funding | Jan 22, 2025 | EIN

International Paper (IP) is on the verge of securing approval from the European Commission for its significant acquisition of DS Smith, valued at $7.1 billion. The transaction has navigated through numerous regulatory hurdles and is set to be formally approved by the EU by January 24. To alleviate competition concerns, IP has agreed to divest certain assets. Announced in March of the previous year, the deal involved an all-share agreement, giving DS Smith shareholders a substantial stake of 33.8% in the merged entity. This acquisition aligns with the growing trend of consolidation within the European paper and packaging industry, bolstering IP's strategic position in the sector. IP secured U.S. regulatory approval in June 2024 when they passed the Hart-Scott-Rodino waiting period and obtained shareholder consent later in October. DS Smith, a longstanding UK-based packaging company, has expanded from its origins in box-making to include recycling and paper manufacturing, operating across more than 30 countries.

Sectors

Packaging
Paper Manufacturing
Mergers and Acquisitions

Geography

European Union – EU regulatory approval is a key milestone for the completion of this significant M&A transaction, underlining the importance of this geography for the industry and the companies involved.
United Kingdom – DS Smith is a UK-based company with origins in London, and it plays a central role in this acquisition deal.

Industry

Packaging – Both International Paper and DS Smith operate within the packaging industry. The acquisition will have a profound impact on the way these companies deliver sustainable packaging solutions across Europe.
Paper Manufacturing – DS Smith's involvement in recycling and paper manufacturing plays a significant role in the merger, emphasizing the importance of this sector to the transaction.
Mergers and Acquisitions – The potential merger between International Paper and DS Smith represents a significant M&A transaction within the paper and packaging sectors.

Financials

$7.1 billion – The estimated value of the acquisition deal for DS Smith by International Paper.
£5.8 billion – The pound sterling equivalent of the acquisition value for DS Smith by International Paper.
33.8% – The proportion of the combined entity that will be owned by DS Smith shareholders post-acquisition.

Participants

Name	Role	Type	Description
International Paper	Buyer	Company	International Paper is a major global player in producing fiber-based packaging products, overseeing this transaction to acquire DS Smith.
DS Smith	Target	Company	DS Smith is a UK-based packaging and paper manufacturer set to be acquired by International Paper in this M&A deal.
European Commission	Regulatory Body	Government	The European Commission is responsible for providing regulatory approval for the acquisition, addressing competition concerns.