Proactive Investors - DS Smith PLC (LON:SMDS) has agreed to a 415p-per-share offer from US packing group International Paper, putting an end to lengthy negotiations with rival domestic bidder Mondi PLC (LON:MNDI).
Talks were still ongoing between DS Smith and Mondi as late as last week when Memphis-based International Paper tabled a knock-out £5.8 billion offer.
DS Smith and International Paper today confirmed the combination to create a combined group valued at nearly £16 billion.
Despite accepting the offer from abroad, International Paper has said it will keep DS Smith's existing HQ along with "key elements" of the London office.
International Paper is also expected to seek a secondary listing of its shares on the London Stock Exchange.
Geoff Drabble, chair of DS Smith, said: "The board believes the combination with International Paper represents attractive value and creates a strong investment proposition for DS Smith shareholders in the global sustainable packaging industry.
“DS Smith is a high-quality business with an excellent customer focus and exceptional people - this is recognised by this combination with International Paper and the strong interest in DS Smith."
Mark Sutton, Chairman and Chief Executive of International Paper, added: "Combining with DS Smith is a logical next step in International Paper's strategy to drive profitable growth by strengthening our global packaging business.
“DS Smith is a leader in packaging solutions with an extensive reach across Europe, which complements International Paper's capabilities and will accelerate growth through innovation and sustainability. We are confident this combination will drive significant value for our employees, customers, and shareholders."