April 15, 2024

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International Paper Crashes the Party with Potential DS Smith Counterbid

1 min read
International Paper throws a curveball with a potential counterbid for DS Smith, challenging the agreed-upon merger with Mondi. This could shake up the packaging industry.
DS Smith

International Paper Crashes the Party with Potential DS Smith Counterbid

Move over Mondi, there’s a new player in town. International Paper, a major American paper producer, is mulling a formal offer for DS Smith, the UK-based packaging giant. This surprise move could upend the already agreed-upon £10 billion merger between DS Smith and Mondi, another paper company listed in London.

Here’s the breakdown:

  • Mondi and DS Smith had a deal in place: These two companies were all set to join forces, creating a “pan-European industry leader” according to a joint statement. Under the terms, DS Smith shareholders would hold 46% of the combined company, with Mondi shareholders taking the remaining 54%.
  • International Paper muscles in: Apparently, International Paper isn’t too keen on being left behind in a consolidating market. With a market cap of $14.15 billion, the American company dwarfs both DS Smith and Mondi. They’ve signaled their interest in a formal counterbid, potentially throwing a wrench into the Mondi-DS Smith deal.
  • Mondi might need to up their offer: If International Paper puts a formal bid on the table, it could spark a bidding war. This would put pressure on Mondi to sweeten their offer if they want to win over DS Smith.

This unexpected turn of events has the potential to significantly change the landscape of the packaging industry. We’ll have to wait and see if International Paper’s play materializes and how Mondi responds. One thing’s for sure, the fight for DS Smith is just heating up.


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