International Paper, DS Smith shareholders approve merger

International Paper (IP) has reported its shareholders have given “overwhelming approval” for its pending acquisition of London-based paper and packaging company DS Smith, while DS Smith shareholders also approved the deal earlier this week.

Memphis, Tennessee-based IP will report the final results of the special shareholders meeting  on Form 8-K with the U.S. Securities and Exchange Commission, and both companies continue to expect the merger to close late in the fourth quarter of this year, subject to regulatory clearance and other customary closing conditions.

“The overwhelming approval from both DS Smith and IP shareholders confirms the strong support of this combination,” IP Chairman and CEO Andy Silvernail says. “Bringing the two companies together will create a true global leader of sustainable packaging solutions which will drive significant value for our employees, customers and shareholders.”

IP and DS Smith confirmed in late March they were in talks to merge and agreed to terms of an all-share combination April 17. The deal is valued at approximately $10 billion.

As part of the proposed merger, IP foresees DS Smith’s North American manufacturing locations and IP’s European manufacturing locations would continue their respective operations, though it is intended the combined company would be headquartered and domiciled in Memphis.

IP intends to maintain key elements of DS Smith’s existing headquarters and is proposing to establish a European headquarters in London.