SCA Packaging’s previously announced divestment of its packaging business, excluding two kraftliner mills in Sweden, has been completed. DS Smith Plc, based in the U.K., acquired the packaging business for €1.7 billion (US$2.413 billion) on a debt-free basis. The divested operations have about 12,000 employees.
Previously, the European Commission (EC) cleared the proposed acquisition of SCA Packaging, a subsidiary of the Swedish group Svenska Cellulosa Aktiebolaget (SCA), by DS Smith. SCA Packaging and DS Smith both produce corrugated packaging. The clearance was conditional upon the divestment of a number of production plants in the U.K. and France.
To remedy the situation, DS Smith and SCA Packaging have offered to divest one of their two U.K. plants producing heavy duty corrugated packaging and one plant producing litho-laminated corrugated packaging. The divestments remove the increment resulting from the merger in these product areas. In addition, the merging parties committed to divest one of their three plants in Brittany, France, which would eliminate any overlap resulting from the proposed transaction. The EC’s investigation showed that the divested businesses would be viable and that the commitments would resolve all identified competition concerns.
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