IP Declared Latest Updates on DS Smith Acquisition Deal

SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper (IP) provided an update on the progress of its potential acquisition of DS Smith. The company provided details on the type and quantum of synergies that would arise from the combination of the two companies.

IP expects its European manufacturing locations and DS Smith’s North American manufacturing locations to continue their respective operations. The combined group would be headquartered and domiciled at International Paper's existing headquarters in Memphis, Tennessee. However, it plans to maintain key elements of DS Smith's headquarters functions and establish a European headquarters in London, United Kingdom, at DS Smith's existing headquarters.

Further to the acquisition deal, any new International Paper shares issued to DS Smith shareholders will be authorised for primary listing on the New York Stock Exchange (NYSE). Meantime, the company also plans to seek a secondary listing of its shares on the London Stock Exchange.

Post-acquisition, IP targets to achieve at least $514m in pre-tax cash synergies every year by the end of the current year. These synergies would be largely from cost savings. IP expects the cost to realize these synergies at around $370 million.

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