US-based International Paper is set to get EU approval for its £5.8 billion (€6.7 billion) purchase of UK rival DS Smith after agreeing to sell assets to address competition concerns, people with direct knowledge of the matter said.
The deal announced last April will boost International Paper's European presence in the paper and packaging sector that is going through consolidation.
The European Commission, which is scheduled to decide on the deal by 24 January, declined to comment. Both International Paper and DS Smith also declined to comment.
The sources declined to comment on details of the asset sales.
DS Smith, which operates in more than 30 countries, provides packaging, paper and recycling services to companies including Amazon and Unilever.
Irish packaging company Smurfit Kappa closed its acquisition of US rival WestRock in an $11 billion (€10.6 billion) deal last year.
Smurfit Westrock, formed out of the merger of packaging giants Smurfit Kappa and WestRock, announced a primary listing on the New York Stock Exchange and standard listing on the London Stock Exchange in July 2024
DS Smith
In December 2024, DS Smith reported a decline in first-half adjusted operating profit, to £221 million (€267.01 million), from £365 million (€441 million) in the year-ago period.
It attributed the decline in adjusted profit to lower packaging prices and added that higher input costs, notably fibre and paper, were broadly offset by cost reduction and productivity initiatives implemented by the company.
The company added that its performance was 'in line' with expectations amid challenging market conditions and it witnessed like-for-like box volume growth of 2% in this period.
