International Paper Company (IP, Financial), a leading global producer of renewable fiber-based packaging, pulp, and paper products, has successfully completed the acquisition of DS Smith plc, a public limited company registered in England and Wales. The acquisition was finalized on January 31, 2025, through its indirect wholly owned subsidiary, International Paper UK Holdings Limited.
The acquisition was executed via a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act 2006. As part of the agreement, DS Smith shareholders will receive 0.1285 of a new share of International Paper's common stock for each ordinary share of DS Smith. This transaction will result in the issuance of approximately 179,847,780 new shares of International Paper's common stock.
Following the acquisition, DS Smith shares are expected to be delisted from the London Stock Exchange on February 4, 2025. Concurrently, the new shares of International Paper's common stock will commence trading on the New York Stock Exchange under the symbol "IP" and will also be available on the London Stock Exchange via a secondary listing under the symbol "IPC."
This strategic acquisition is anticipated to enhance International Paper's market position and expand its footprint in the European market. The newly issued shares will account for approximately 34.1% of International Paper's outstanding share capital, based on the company's basic outstanding share capital and DS Smith's fully diluted share capital as of the acquisition date.
International Paper's management expressed optimism about the acquisition, highlighting the potential for synergies and growth opportunities in the packaging sector. The company had previously disclosed the terms of the acquisition in an announcement pursuant to Rule 2.7 of the United Kingdom City Code on Takeovers and Mergers on April 16, 2024.
For more detailed information on the acquisition and its implications, interested parties are encouraged to review the company's filings with the U.S. Securities and Exchange Commission.
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