The deal aims to generate $514 million in cost savings and efficiencies within the first four years after completion. However, the acquisition will undergo scrutiny from the European Commission, U.S. authorities, and other regulatory bodies for approval.
International Paper acquires DS Smith in £5.8b deal : Implications for the Market
Once the deal receives the necessary clearances and 75% shareholder consent from DS Smith, International Paper plans to seek a secondary listing on the London Stock Exchange. Danni Hewson of AJ Bell remarked that this secondary listing could benefit both DS Smith’s U.K. investors and the London Stock Exchange.
Shares of International Paper, listed on the New York Stock Exchange, dipped 0.5% early Monday, while DS Smith’s shares, listed on the FTSE 100 index in London, fell 2.9% Tuesday afternoon. Financial advisers from leading firms, including BofA Securities Inc., Goldman Sachs International, Citigroup Global Markets Ltd., and J.P. Morgan Securities PLC, are involved in advising both companies throughout the transaction.
