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Highlights:
- Shareholder Approval: Both International Paper and DS Smith shareholders have approved the £5.8 billion takeover.
- Global Packaging Leader: The merger will create a leading global provider of sustainable packaging solutions.
Next Steps: Regulatory approvals and other conditions remain before the deal is finalized.
The acquisition of UK-based packaging group DS Smith by American pulp and paper giant International Paper has received the necessary approval from shareholders on both sides. The £5.8 billion takeover, initially announced in April, is now set to move forward following shareholder votes and other required approvals.
On Monday, DS Smith confirmed that International Paper (IP) shareholders voted in favor of the acquisition last Friday. This follows DS Smith's own shareholder approval on 7 October, with both votes showing strong support for the deal. The companies now await remaining regulatory approvals to finalize the transaction.
A Global Leader in Sustainable Packaging
Andy Silvernail, chairman and chief executive of International Paper, expressed enthusiasm for the merger, stating, "The overwhelming approval from both DS Smith and IP shareholders confirms the strong support of this combination." Silvernail emphasized that the merger will position the combined entity as a leading global provider of sustainable packaging solutions, benefiting employees, customers, and shareholders alike.
The deal is expected to create significant synergies between the two companies, particularly as both firms have a strong focus on sustainability and environmentally friendly packaging materials. By merging, they aim to leverage their combined expertise to meet increasing demand for sustainable solutions in the packaging industry.
Positive Market Reaction and Next Steps
Since the initial announcement of the deal, shares in DS Smith have surged over 50% year-to-date, reflecting strong investor confidence in the acquisition. As of 1108 BST on Monday, DS Smith shares remained stable at 467.09p.
With shareholder approval now secured, the companies are moving forward with regulatory reviews and finalizing other conditions required to complete the transaction. While no specific timeline has been confirmed, the approvals signal a significant step towards closing the deal.
