BRUSSELS – U.S.-based International Paper (NYSE: IP) secured EU clearance for its 5.8-billion-pound ($7.2 billion) acquisition of UK rival DS Smith with a pledge to sell assets to address competition concerns.
International Paper is seeking to boost its European presence in the paper and packaging sector with the deal amid consolidation in the industry.
The European Commission said the U.S. packaging company will divest five of its plants in Europe. These include three plants in France, one in Portugal, and one in Spain.
Reuters exclusively reported on January 21 that the EU antitrust enforcer would give conditional approval to the deal.
DS Smith, which provides packaging, paper, and recycling services to companies including Amazon (NASDAQ: AMZN) and Unilever (NYSE: UL), has operations in more than 30 countries.
($1 = 0.8114 pounds)
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