
Natee Meepian | stock.adobe.com
International Paper (IP) reportedly has offered unspecified concessions to the European Commission in the company’s proposed $7.3 billion bid to acquire London-based paper and packaging company DS Smith.
According to reports, the European Commission had been critical of the proposed merger because of concerns it might reduce competition in the market.
A notice provided by the European Commission indicates the concessions were offered Dec. 20, 2024, and the commission has set a new deadline of Jan. 24 to decide if the concessions are sufficient and that the deal should be cleared.
Memphis, Tennessee-based IP initially expected the deal to close in the fourth quarter of 2024, but with the regulatory process still underway, the company announced in its third quarter 2024 earnings report it now expects it to close in the first quarter of this year.
“We are very excited to complete the DS Smith acquisition,” IP CEO Andy Silvernail said during the company’s earnings call Oct. 31, 2024. “We are bringing together two great organizations and building winning positions in the attractive markets of North America and Europe. … Our teams are actively involved in planning for the integration.”
The companies first agreed to the deal in April 2024, and by October, each companies’ respective shareholders had approved the merger.
As part of the proposed merger, IP foresees DS Smith’s North American manufacturing locations and IP’s European manufacturing locations would continue their respective operations, though it is intended the combined company would be headquartered and domiciled in Memphis.
IP intends to maintain key elements of DS Smith’s existing headquarters and is proposing to establish a European headquarters in London.
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