DS Smith has officially disclosed ongoing discussions with International Paper, indicating potential complications for Mondi’s proposed acquisition of the UK-based packaging firm. In response to this revelation, shares in DS Smith experienced a notable surge, climbing by 7 percent.
A report by Bloomberg unveiled International Paper’s contemplation of extending an offer of £4.15 per share for DS Smith, effectively valuing the British packaging manufacturer at £5.7 billion. This development casts a shadow over Mondi’s previously articulated bid of £5.1 billion for DS Smith.
The packaging industry has witnessed a rapid pace of consolidation, particularly in the aftermath of the pandemic-induced surge in e-commerce, which led to an unprecedented demand for packaging materials. This context underscores the strategic significance of potential mergers and acquisitions within the sector.
