British packaging company Mondi to buy smaller rival DS Smith (updated)

WestRock Co

07/03/2024 17:57

(Adds details on offer's premium, companies' statement)
       March 7 (Reuters) - Mondi  MNDI.L  reached an agreement
in principle for an all-share offer to buy smaller rival DS
Smith  SMDS.L  for 5.14 billion pounds($6.57 billion) on
Thursday to create a paper and packaging giant worth more than
10 billion pounds in market value.
        The terms of the deal represent an implied value of 373
pence per DS Smith share, a 33% premium to DS Smith's closing
share price of 281p on Feb.7, a day before Mondi announced the
prelim bid.
  
        "The combination is an exciting opportunity to create a
pan-European industry leader in paper-based sustainable
packaging solutions," the companies said in a joint statement. 
  
    Mondi's offer marks the second recent multi-billion attempt
at consolidation in the paper and packaging industry.
    Rival Smurfit Kappa  SKG.I  is buying WestRock  WRK.N  in a
$11 billion deal that has yet to close. 
        
  


($1 = 0.7822 pounds)


 (Reporting by Yadarisa Shabong, Eva Mathews and Richard Rohan
Francis in Bengaluru; Editing by Sherry Jacob-Phillips and Tasim
Zahid)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))