On Friday 24 January, the European Commission approved, under the Merger Regulation, the proposed acquisition of DS Smith Plc by International Paper Company. The approval is conditional upon full compliance with the commitments offered by the parties.
International Paper (US company) and DS Smith (British company) specialise in paper and packaging. The Commission’s investigation showed that the transaction, as initially notified, would have reduced competition in certain markets (corrugated sheets in the north and west of Portugal, heavy-duty corrugated sheets in north-east Spain, corrugated boxes in north-west France).
To address the concerns, the parties offered to divest five International Paper plants in Europe: three plants in Normandy, France (Saint-Amand-Villages, Mortagne and Cabourg), one box plant in Ovar, Portugal and one box plant in Bilbao, Spain.
Following the positive feedback received during the market test, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments made.
Further details: https://aeur.eu/f/f7x (Original version in French by Lionel Changeur)