(Reuters) – International Paper said on Monday it has entered into exclusive negotiations with a family-owned company to sell its five corrugated box plants in Europe to meet the regulatory commitments for the acquisition of UK rival DS Smith.
The company, which has been looking to expand its presence in the paper and packaging sector in Europe, said it would divest three plants in France, and one each in Portugal and Spain to PALM, which produces container boards.
The companies expect to sign a definitive share purchase deal, following the required French works council procedures, with closing expected by the end of second quarter of fiscal 2025, International Paper said.
In January, International Paper secured EU’s clearance for its 5.8-billion-pound ($7.2 billion) acquisition of DS Smith and had vowed to sell certain assets to address competition concerns.
The sale of the five plants would fulfill all obligations to the European Commission related to the acquisition, International Paper said.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)
