24 Jan. 2025: The EU Commission has approved the IP/DS Smith merger. The EU Commission has approved the IP/DS Smith merger.

International Paper will have to divest 5 sites in France, Portugal and Spain in order to finalise the transaction.

The European Commission has approved the proposed acquisition of DS Smith by International Paper Company under the condition of the sale of assets in France, Spain and Portugal.

The Commission's investigation showed that the transaction as initially notified, would have reduced competition in some market segments and regions, notably the markets for corrugated sheets in the North and West of Portugal, for heavy-duty corrugated sheets in North-East Spain, as well as for corrugated cases in North-West France.

To address these concerns, the parties offered to divest five of International Paper's plants in Europe, according to the Commission.

The affected plants are:

- the box plants in Saint-Amand-Villages and Mortagne, and the sheet plant in Cabourg in Normany,

- the box plant in Ovar, Portugal and

- the box plant in Bilbao, Spain.

The Commission says that these commitments fully address its competition concerns and will approve a suitable purchaser of the divested businesses in a separate procedure.

International Paper can only implement the acquisition of DS Smith following that approval.

The transaction was announced in April 2024.

by Frauke Schmidt, EUWID