BRUSSELS – U.S.-based International Paper (NYSE: IP) is set to get EU approval for its 5.8 billion pound ($7.12 billion) purchase of UK rival DS Smith after agreeing to sell assets to address competition concerns, people with direct knowledge of the matter said on Tuesday.
The deal announced last April will boost International Paper’s European presence in the paper and packaging sector which is going through consolidation.
The European Commission, which is scheduled to decide on the deal by January 24, declined to comment. Both International Paper and DS Smith also declined to comment.
The sources declined to comment on details of the asset sales.
DS Smith, which operates in over 30 countries, provides packaging, paper, and recycling services to companies including Amazon (NASDAQ: AMZN) and Unilever (NYSE: UL).
Irish packaging company Smurfit Kappa closed its acquisition of U.S. rival WestRock in an $11 billion deal last year.
($1 = 0.8147 pounds)
