Advertisement
UK markets closed
  • NIKKEI 225

    37,438.61
    +370.26 (+1.00%)
     
  • HANG SENG

    16,511.69
    +287.55 (+1.77%)
     
  • CRUDE OIL

    83.02
    -0.12 (-0.14%)
     
  • GOLD FUTURES

    2,343.80
    -70.00 (-2.90%)
     
  • DOW

    38,239.98
    +253.58 (+0.67%)
     
  • Bitcoin GBP

    53,829.20
    +1,581.46 (+3.03%)
     
  • CMC Crypto 200

    1,404.15
    -1.84 (-0.13%)
     
  • NASDAQ Composite

    15,451.31
    +169.30 (+1.11%)
     
  • UK FTSE All Share

    4,362.60
    +66.19 (+1.54%)
     

DS Smith suitor pledges London Stock Exchange listing and headquarters in the City

DS Smith could be at the heart of a bidding war after a US-based International Paper made an approach to the firm
DS Smith could be at the heart of a bidding war after a US-based International Paper made an approach to the firm

The US paper outfit vying to snap up box-maker DS Smith has said it will look for a secondary listing on the London Stock Exchange and retain a base in the City if it is successful in buying the firm. 

Memphis-based International Paper, which has not yet tabled a firm offer for DS Smith, said it would keep the company’s existing headquarters in London after the deal.

“Key elements” of the functions at DS Smith’s London office would be maintained, subject to “consultation with impacted employees”, International Paper said, adding that it would also “seek a secondary listing of its shares on the London Stock Exchange”.

ADVERTISEMENT

“I believe the combination of International Paper and DS Smith would create a winning position in renewable packaging and would be a strong catalyst to drive profitable growth and create value,” International Paper’s chief executive-elect, Andy Silvernail, said.

The firm reckons a tie-up could deliver at least $514m (£405m) of pre-tax cost savings on an annual basis.

Last month, the paper giant stirred up a potential bidding war over DS Smith with a takeover proposal that valued the UK firm at £5.72bn. The offer came after DS Smith had already waved through a bid from its London-listed rival Mondi several weeks prior.

International Paper has not launched a formal bid but has until April 23rd to make an offer.

“Significant progress has been made” in its due diligence for the deal, International Paper said.

Shares in DS Smith have rocketed some 33 per cent this year after the firm has fallen into the sights of buyers. After International Paper made it statement to the stock market, shares bounced nearly three per cent to their highest level since October 2021.