International Paper (IP) will acquire DS Smith's French subsidiary DS Smith Packaging Normandie with two sites in Saint-Amand and Cabourg and the former Europac Ovar plant in Portugal for €63m, according to Euwid. The acquisition is reportedly creating additional integration value with IP's recycled containerboard mill in Madrid.
IP and DS Smith anticipate the transaction to be completed within the next six months. Completion of the acquisition is subject to customary closing conditions, including regulatory approvals as well as works council consultation in France.
Through the sale of the three sites, DS Smith is set to fulfil the commitments made to the European Commission in connection with the approval of the acquisition of Europa Cartones y Papel (Euro-pac). The Commission had approved this deal in November last year, but fears that it would significantly reduce the level of competition in the markets for corrugated board and packaging in Portugal and France.
