Agreement reached: International Paper to acquire DS Smith in all-share deal

International Paper and DS Smith have agreed to merge in an all-share deal. Each DS Smith Share will be valued at 415 pence per share, outbidding Mondi. This values DS Smith's total share capital at about £5.8 billion and its enterprise value at around £7.8 billion.

After the merger, DS Smith Shareholders will own approximately 33.7% of the Combined Company, while International Paper Shareholders will own about 66.3%. International Paper will also seek a secondary listing of its shares on the London Stock Exchange.

The merger aims to create a global leader in sustainable packaging solutions by combining complementary businesses.

The Combined Company will have strong positions in Europe and North America, serving diverse customers in growing markets with sustainable packaging solutions.

Commenting on the Combination, Geoff Drabble, Chair of DS Smith, said: The Board believes the combination with International Paper represents attractive value and creates a strong investment proposition for DS Smith shareholders in the global sustainable packaging industry. DS Smith is a high quality business with an excellent customer focus and exceptional people - this is recognised by this combination with International Paper and the strong interest in DS Smith.