International Paper eyes EU approval in US$7.1B DS Smith deal, CCI approves Majesty II’s acquisition of AI Lenarco Midco

UK – Sustainable packaging solutions provider International Paper (IP) is poised to secure approval from the European Union for its £5.8 billion (US$7.12bn) acquisition of UK competitor DS Smith.

According to sources cited by Reuters, the approval follows IP’s agreement to divest certain assets to address competition concerns.

The European Commission is expected to issue a formal decision on the deal by January 24.

In March last year, IP proposed an all-share acquisition of the entire issued share capital of DS Smith.

Under the terms, DS Smith shareholders would receive 0.1285 shares in IP for each DS Smith share, resulting in DS Smith shareholders owning approximately 33.8% of the combined entity.

By June, the proposed merger reached a milestone: the waiting period under the US Hart-Scott-Rodino Act expired.

IP secured shareholder approval in October, moving closer to finalizing the deal. Once approved, the acquisition is expected to bolster IP’s position in the European paper and packaging market, which is undergoing significant consolidation.

Founded in the 1940s as a box-making business in East London, DS Smith has evolved into a comprehensive packaging solutions provider. It now operates in over 30 countries, offering packaging, paper, and recycling services.

CCI approves Majesty II’s acquisition of AI Lenarco Midco

The Competition Commission of India (CCI) has approved a significant acquisition in the packaging sector involving AI Lenarco Midco and Manjushree Technopack, a specialist in rigid plastic packaging.

The deal unites Majesty II, a special-purpose vehicle and investment holding company under the PAG group, with a consortium of investors including Ashoka India Equity Investment Trust, Nuvama Private Investment Trust, and InCred Growth Partners Fund – I.

As part of the transaction, Majesty II will acquire the entire equity shareholding in AI Lenarco Midco, leading to an indirect majority stake in Manjushree Technopack.

Majesty II was specifically created for this acquisition and is part of PAG, a leading alternative investment company focused on the Asia-Pacific region.

Key investors in this deal include:

Ashoka India Equity Investment Trust is a closed-ended investment company based in England and Wales. It aims to achieve long-term capital growth through investments in Indian-listed securities and companies with significant operations in India.

Nuvama Private Investment Trust is an SEBI-registered Category II Alternative Investment Fund (AIF). It provides a structured and regulated investment platform to facilitate investments in various sectors.

InCred Growth Partners Fund – I operates under the InCred Alternative Opportunities Trust and is managed by InCred Alternative Investments.

This SEBI-registered Category II AIF targets high-quality private businesses across diverse sectors, including consumer goods, financial services, technology, and enterprise solutions.

The CCI’s approval marks a pivotal step in combining these entities, strengthening their collective market presence and investment potential.

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