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DS Smith takeover in doubt after Suzano bids for International Paper

Published 23/05/2024, 11:37
DS Smith takeover in doubt after Suzano bids for International Paper
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Proactive Investors - In a spot of corporate intrigue in the world of Big Paper, The acquirer has become a potential acquiree.

Back in April, London-listed paper and plastic big cap DS Smith PLC (LON:SMDS) agreed to be bought out by US rival International Paper in a £5.8 billion deal.

But those plans could now be in doubt as International Paper has found itself the target of a potential takeover.

Suzano, the largest paper and pulp company in Latin America with a market capitalisation of 64.8 billion Brazilian reals (US$12.4 billion), has reiterated its intentions on acquiring International Paper in a filing to the US Securities and Exchange Commission.

Responding to sudden fluctuations in its share price, Suzano confirmed “its interest in International Paper assets” to the regulator.

However, Suzano added that “up to the moment, there is no agreement, binding or otherwise, nor any decision or deliberation by the company's management regarding a potential operation that meets the minimum materiality required to qualify as a material fact”.

It raises the question as to the viability of International Paper’s agreed-upon combination with DS Smith.

International Paper has yet to provide a comment on Suzano’s offer but according to a Reuters report, any such takeover would be contingent on International Paper abandoning its DM Smith takeover.

A DS Smith told Proactive there was nothing further to add at the time, but will update if further developments come to light.

Markets seemed unphased by the recent spanner in the works. DS Smith shares added 0.6% on Thursday.

Read more on Proactive Investors UK

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