DS Smith shareholders have approved the acquisition of SCA's packaging business. The transaction is pending approval by EU antitrust authority.
Shareholders of DS Smith have approved the company’s proposal to acquire SCA Packaging at a general meeting held on 3 February. In January, DS Smith offered to acquire SCA Packaging operations, excluding the two SCA kraftliner mills in Sweden, for a total consideration of €1.7bn on a debt free basis. The deal is still subject to antitrust clearance from the European Commission. Closure of the transaction is expected during second quarter 2012.
DS Smith has also made a formal offer to acquire SCA’s packaging business in France. “This process is subject to an information and consultation procedure with the relevant work councils and will be treated separately,” says SCA.
Once approved and completed, the acquisition of SCA’s packaging operations is said to make DS Smith second largest corrugated packaging supplier in Europe, following Smurfit Kappa Group.