The battle for the British paper and packaging company DS Smith has entered the next stage. Mondi’s deadline on their DS Smith offer is now set for April 23rd, which is the same day as International Paper’s deadline offer. International Paper said it was still considering making an offer and believed that an acquisition of DS Smith was in line with its strategy to strengthen its corrugated packaging business in Europe. They expect the combination to generate significant synergies. A combined International Paper Group and DS Smith could generate at least $514 million in pre-tax cash synergies on an annual basis by the end of the fourth year following the acquisition’s completion. IP projects that the total cost to achieve the synergies described above would be approximately $370 million. Note that although the headquarters of the merged group plans to be located in Memphis, Tennessee, the European headquarters would remain in London. International Paper’s announcement came shortly after the announcement of the appointment of Andrew Silvernail as CEO, effective May 1st.
Published on 18/04/2024