Shares in the British paper and packaging company are rising more than 9% on the stock exchange, one day after the proposal to purchase North American company International Paper, which emerged after the offer presented by fellow countryman Mondi.
The British paper company DS Smith, which has business and factories in Portugal, is in an acquisition process that officially brings together two proposals: that of the North American International Paper and the fellow countryman Mondi, with whom it had reached an initial agreement that valued the company at 5 .14 billion pounds sterling (around 6 billion euros).
This Tuesday the game heated up and changed the “packaging” for the management of DS Smith, which received a higher proposal – of 5.72 billion pounds sterling (approximately 6.67 billion euros) – from International Paper, which trades on Wall Street. In other words, it is 415 cents per share versus 373 cents per share for Mondi, listed in the United Kingdom.
“The dispute over the acquisition of DS Smith is shaking up the global sector of pulp and paper manufacturers, where the Portuguese companies Altri and Navigator also have a presence. Mondi had already concluded an agreement to close the acquisition of the British company, but the North American giant International Paper also wants to enter the race”, highlights the research BA&N’s market share.
The Americans are “studying an offer that values DS Smith at 6.8 billion pounds, which incorporates a premium of 48% compared to the price recorded before Mondi’s offer”, highlights the analysis signed by Nuno Carregueiro. However, DS Smith’s board of directors assured that there is still no certainty about any of the acquisition proposals nor a concrete offer.
“International Paper’s board of directors continues to consider mergers and acquisitions in a disciplined manner,” explained the administrators of the British multinational. In a statement made public yesterday, they added: “And it believes that the acquisition of DS Smith is aligned with International Paper’s strategy to improve its corrugated cardboard packaging business in Europe and would create significant value for shareholders” of both.
Shares in DS Smith, whose headquarters are in London, are gaining more than 9% on the stock exchange to £392.80, while Mondi’s shares are up 1% to £1,410.50. International Paper bonds fell 6.49% to $38.20 at the close of trading yesterday on the other side of the Atlantic.
In Portugal, DS Smith entered 2016 with the acquisition of Gopaca and P&I Displays. In 2019, it strengthened its presence by purchasing Europac. The division of “Packaging” has six factories: in Guilhabreu, Esmoriz, Águeda, Carregal do Sal, Leiria and Lisbon, as well as a logistics center in Madeira. The company also has two Recycling units, in Porto and Figueira da Foz, and a paper manufacturing unit in Viana do Castelo.
DS Smith prepares to take technology from the Portuguese hub to Madrid
