Towards a Mondi/DS Smith merger?

In a statement dated February 8, Mondi confirms that «it is in the early stages of considering a possible all share combination with DS Smith. »
« Mondi routinely considers various options within its disciplined capital allocation framework aimed at accelerating its growth in the structurally growing packaging sectors in which it operates. Mondi believes that a possible all share combination with DS Smith represents an exciting opportunity to create an industry leader in European paper-based sustainable packaging solutions:
• well positioned to benefit from structural growth trends in sustainable packaging;
• benefitting from enhanced vertical integration, bringing with it a balanced paper position, greater earnings resilience through the cycle and enhanced security of paper supply, for the benefit of both shareholders and customers; and
• benefitting from substantial synergies as a result of vertical integration alongside highly complementary positions and expertise in containerboard, corrugated solutions and flexible packaging, in addition to expected benefits from economies of scale and efficiencies across a combined supply chain and administration.
[…]There can be no certainty that an offer will be made to acquire DS Smith. »
This potential merger would create a company worth more than £10 billion ($12.6 billion). However, no proposal has been received by DS Smith at this stage. Under UK takeover bid rules, the deadline for submitting an offer is March 7.
If confirmed, this merger would take place in the wake of the merger, announced a few months ago and still in progress, between WestRock and Smurfit Kappa which would allow the new group to be at the head of a combined turnover of some $34 billion.

V. L.