IP and DS Smith agree deal

The boards of International Paper (IP) and DS Smith have reached an agreement on an all-share business combination.

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The boards of International Paper (IP) and DS Smith have reached an agreement on an all-share business combination.

The deal is in line with the initial £4.15 per share offer for the UK-based packaging firm IP made at the end of March, and implies an enterprise value for DS Smith of £7.8 billion ($9.7 billion). As revealed at the beginning of April, IP has identified synergies of at least $514 million.

The DS Smith board – which had previously approved a takeover offer from Mondi – is now unanimously recommending the company’s shareholders vote in favour of the IP proposal. This vote will take place at a court meeting to be held later this year, with the transaction expected to close – subject to the usual approvals – in the fourth quarter of 2024.

London, UK