The Zhitong Finance App learned that International Paper (IP.US) has made concessions to the European Commission to seek approval from the Commission to acquire European paper packaging giant DS Smith for 5.8 billion pounds. According to the European Commission website updated on Friday, the international paper industry proposed a remedy on December 20, 2024. Additionally, the European Commission has set January 24 as the deadline to decide whether to approve the deal.

According to reports, at the beginning of 2024, the two major companies, International Paper and Mondi, both expressed interest in acquiring DS Smith, triggering a bidding war against DS Smith. After months of bidding and negotiations, International Paper finally submitted a formal acquisition proposal for an all-share deal on April 16, 2024, with a total value of around £5.8 billion. The proposal surpassed Mondi's initial bid, then Mondi announced its withdrawal from the bidding war, and the international paper industry became the final buyer.

In April 2024, DS Smith announced plans to merge with the international paper industry to create a leading global supplier of sustainable packaging solutions and occupy a more important position in the European and North American markets. According to the agreement between the parties, DS Smith's shareholders will receive a portion of International Paper's shares, at a specific ratio of 33.7%, while International Paper shareholders will hold the remaining shares. The deal is expected to close in the first quarter of 2025, when DS Smith will become part of the international paper industry and is expected to have a secondary listing on the London Stock Exchange.

International Paper said that the motive for the acquisition of DS Smith this time was mainly due to the emphasis placed on the European market. The European market has strict standards and high demand for sustainable packaging and high-quality paper products. Through the acquisition of DS Smith, the international paper industry can not only directly enter this mature and profitable market, but also use DS Smith's extensive business network and customer base in Europe to enhance the competitiveness of the global paper products and packaging industry.

Furthermore, in recent years, global demand for sustainable packaging solutions has increased, and mainstream European and American companies generally pay attention to ESG (Environmental, Social, and Corporate Governance) management. The acquisition of DS Smith will help the international paper industry to better respond to market trends and customer needs, and enhance the company's overall sustainability and innovation capabilities.