The acquisition is creating additional integration value with IP's recycled containerboard mill in Madrid, the company said.
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. A corresponding agreement was already reached, according to the two companies.
IP and DS Smith expect 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, the companies announced.
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 the acquisition of Europac in November last year, but expressed concerns that it would significantly reduce the level of competition in the markets for corrugated board and packaging in Portugal and France.
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