International Paper, headquartered in the U.S., is poised to receive approval from the EU for its £5.8 billion ($7.12 billion) acquisition of British competitor, DS Smith, by committing to divest assets to alleviate competition concerns, according to individuals familiar with the matter. This acquisition will strengthen International Paper's position in the European paper and packaging sector, which is currently undergoing consolidation.
The European Commission is expected to make a decision on the deal by January 24 but has refrained from providing comments. Both International Paper and DS Smith have also chosen not to comment. The insiders have not disclosed specifics regarding the asset sales.
DS Smith, operating in over 30 countries, offers packaging, paper, and recycling services to various companies, including Amazon and Unilever. In a similar vein, Irish packaging company Smurfit Kappa finalized its acquisition of U.S. competitor WestRock in an $11 billion transaction last year.
(1 pound equals $0.8147)