Mondi approaches DS Smith over potential €11.7bn merger

Despite no formal proposal being made, DS Smith announced it had received a highly preliminary expression of interest from Mondi. This precipitated DS Smith’s shares rising by 13%, which brought its market value to £4.49 billion.

Mondi must make a firm offer before 17:00 on 7^th March 2024 for the action to go ahead, although this deadline can be extended with the consent of the Takeover Panel.

In a statement, Mondi said: “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.” 

This news comes after Smurfit Kappa and WestRock agreed to combine their businesses into a $20 billion company in September 2023.

The merger is set to be completed in the second quarter of 2024, subject to customary closing conditions.