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International Paper Completes $9.9 Billion DS Smith Acquisition

International Paper's latest move to acquire DS Smith for $9.9 billion signals a strategic shift for the company. Shareholders will see ownership adjustments as trading begins for new shares in 2025.

Date: 
AI Rating:   6

Overview of the Acquisition
International Paper (IP) has successfully completed its acquisition of DS Smith plc, marking a significant milestone in its strategic growth plan. The transaction, valued at approximately $9.9 billion, will affect share structures and ownership ratios between the two companies.

Impact on Share Structure
As a part of the acquisition, IP will issue approximately 179.85 million new shares of its common stock, resulting in a new ownership structure where IP shareholders will own 66.3 percent and DS Smith shareholders will own 33.7 percent of the combined entity. This adjustment could alter the financial outlook for both companies moving forward.

Market Presence
The new shares of IP common stock are slated to begin trading on February 4, 2025, on the New York Stock Exchange and the London Stock Exchange. This global trading presence may enhance liquidity and broaden the investor base for International Paper, potentially impacting stock prices positively.