11 Oct. 2024: International Paper announces overwhelming shareholder support for its proposed acquisition of DS Smith. The shareholders of both companies have approved the merger, with the deal expected to close by the end of the fourth quarter of 2024, pending regulatory approvals and other customary closing conditions.

The acquisition of DS Smith, a leading provider of sustainable packaging solutions based in the UK, marks a significant move for International Paper, a global giant in renewable fiber-based products. DS Smith operates across Europe and North America, focusing on corrugated packaging and recycling, and is known for its strong commitment to sustainability and innovation in packaging solutions. The merger is expected to create a powerful combined entity, enhancing their capabilities in sustainable packaging and expanding their market presence globally.

International Paper’s interest in acquiring DS Smith dates back several months as part of its strategic effort to consolidate its market share in the global packaging sector. DS Smith, with a history of rapid expansion through acquisitions, has grown into one of the largest packaging companies in Europe, focusing on innovative, eco-friendly solutions. The acquisition aligns with International Paper's broader goals to boost its sustainable packaging solutions in response to growing demand driven by e-commerce, sustainability pressures, and shifting consumer preferences.

The deal is valued at approximately $10 billion, though exact financial details may evolve as regulatory processes are completed. International Paper plans to issue new shares of its common stock to DS Smith shareholders as part of the deal, reflecting the strategic importance of this acquisition to both companies' future growth strategies.

In a joint statement, International Paper CEO Andy Silvernail emphasized the potential synergies, stating, "Bringing the two companies together will create a true global leader of sustainable packaging solutions, which will drive significant value for our employees, customers, and shareholders."

The companies expect the combination to accelerate their growth in the global market for sustainable packaging, leveraging DS Smith's European footprint and International Paper's expertise in North America and beyond. However, the acquisition is subject to regulatory clearance, with potential challenges in regions where both companies have significant market shares. The merger is also expected to face scrutiny from competition authorities in Europe and the United States, though both companies remain confident that they will meet all necessary conditions.

Once completed, this deal will further position International Paper as a leader in sustainable packaging, tapping into the growing demand for environmentally friendly packaging solutions. The acquisition is seen as a response to both companies' desire to tackle global sustainability challenges while capturing the expanding market for sustainable packaging products, particularly in the face of increasing regulatory pressures and consumer demand for greener products.