International Paper has announced a significant move in the paper and packaging industry with its agreement to acquire DS Smith in a deal valued at $7.20 billion. The acquisition, structured as an all-share deal, positions the British firm at a valuation of 5.8 billion pounds.
Upon finalization, DS Smith shareholders will hold approximately 33.7% ownership in the combined entity, with the remainder belonging to International Paper shareholders. The merged company intends to pursue a secondary listing on the London Stock Exchange.
DS Smith has endorsed the acquisition proposal from International Paper, indicating that while it had entertained interest from both International Paper and Mondi, the former has now emerged with a firm offer.
Both International Paper and Mondi are under pressure to finalize their proposals by April 23, lest they risk losing the opportunity to proceed with the acquisition.
