The European Commission has conditionally approved International Paper’s $7.16 billion acquisition of DS Smith, contingent on divestitures of five facilities to address competition concerns. This includes three plants in Normandy, France, one in Ovar, Portugal, and one in Bilbao, Spain, ensuring competition remains intact in key European markets. The divestitures eliminate overlaps in corrugated packaging markets in northwest France, northern Portugal, and northeastern Spain.

The regulator noted that, without these measures, the merger would have reduced market competition due to high concentration levels, likely resulting in increased costs for businesses relying on corrugated products. An independent trustee will monitor the implementation of these commitments, and a suitable purchaser for the divested plants must receive separate approval from the Commission.

International Paper, a U.S.-based leader in sustainable packaging, announced the acquisition of UK-headquartered DS Smith in April 2024. The deal had already cleared U.S. antitrust review under the Hart-Scott-Rodino Act in 2024. According to International Paper CEO Andy Silvernail, the combination will strengthen their position in North American and EMEA packaging markets, enhancing their sustainable packaging solutions portfolio.

The Commission’s decision, finalized on January 24, 2025, follows a detailed investigation under the EU Merger Regulation, which included a 35-day Phase I review with commitments proposed by the parties. Teresa Ribera, the EU’s Executive Vice-President for Clean, Just, and Competitive Transition, emphasized that these commitments ensure fair competition and prevent price hikes for businesses and consumers.