International Paper offers concessions to EU for its £5.8B bid to buy DS Smith

Investing.com -- In a bid to secure approval for its £5.8 billion deal of DS Smith Plc (LON:SMDS ), International Paper Co (NYSE:IP ) has offered concessions to the European Commission to address potential competition concerns. 

The European Commission had been scrutinizing the proposed merger due to concerns that it might reduce competition in the market. 

Although the specific details of the concessions remain confidential, they typically include measures such as divestitures or adjustments to the structure of the transaction to preserve market competition.

This is a critical step in a complex regulatory process. The European Commission now has until January 24, to decide whether the proposed remedies are sufficient to clear the deal. 

If approved, the acquisition would give International Paper a stronger foothold in the European market, particularly in the rapidly growing sustainable packaging sector.

The £5.8 billion deal of DS Smith, a major player in the sustainable packaging space, would enhance International Paper’s ability to compete in Europe and globally. 

DS Smith’s expertise in environmentally friendly packaging solutions, coupled with its wide network across Europe, makes it an attractive acquisition for International Paper, which has been seeking to bolster its position in the packaging industry.

Source: Investing.com