International Paper secures strong shareholder support for DS Smith acquisition

USA – International Paper has gained overwhelming shareholder support for its proposed acquisition of DS Smith, marking a significant step forward in its expansion strategy.

Shareholders from both companies have approved the merger, which is expected to finalize by the end of the fourth quarter of 2024, pending regulatory approvals and customary closing conditions.

The acquisition of DS Smith, a UK-based leader in sustainable packaging solutions, represents a major move for International Paper, a global giant in fiber-based products.

DS Smith operates extensively across Europe and North America, specializing in corrugated packaging and recycling.

The company is well-known for its commitment to sustainability and innovation. This merger is set to create a powerful combined entity, enhancing capabilities in sustainable packaging and expanding global market reach.

International Paper’s interest in acquiring DS Smith has been evident for several months, as part of a broader strategy to consolidate its position in the global packaging sector.

DS Smith, which has rapidly grown through acquisitions, is now one of Europe’s largest packaging companies, recognized for its innovative, eco-friendly solutions.

The acquisition aligns with International Paper’s goals of advancing sustainable packaging solutions in response to rising e-commerce demand, sustainability pressures, and shifting consumer preferences.

The deal is strategically important, valued at approximately US$10 billion, though financial details may evolve as regulatory processes proceed.

International Paper will issue new shares to DS Smith shareholders as part of the transaction, underlining the deal’s long-term significance for both companies.

Andy Silvernail, CEO of International Paper, highlighted the potential synergies, “Bringing the two companies together will create a true global leader in sustainable packaging solutions, driving significant value for our employees, customers, and shareholders.”

The merger is expected to accelerate growth in the sustainable packaging sector, leveraging DS Smith’s European footprint and International Paper’s expertise in North America.

However, the deal faces potential regulatory scrutiny in regions where both companies hold significant market shares, particularly in Europe and the United States.

Despite these challenges, both companies remain confident they will meet regulatory requirements.

Once completed, the acquisition will further position International Paper as a leader in environmentally friendly packaging. It will tap into the growing demand for sustainable products amid increasing regulatory and consumer pressure for greener solutions.

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