International Paper and DS Smith: From Acquisition to Planned Separation
International Paper completed its acquisition of DS Smith in early 2025, in a deal designed to strengthen the group’s position in the global paper-based packaging market. Just over a year later, its strategy took a new direction: International Paper announced plans to separate its North American operations from its Europe, Middle East and Africa (EMEA) business. The main milestones help explain the background to the latest developments.
April 2024: Acquisition agreement announced
On 16 April 2024, International Paper announced an agreement to acquire DS Smith, the UK-based paper packaging group. Initially valued at approximately $7.2 billion, the transaction aimed to combine geographically complementary operations and strengthen both companies’ position in the packaging sector.
The agreement followed a period of competing interest in DS Smith, including an approach from Mondi. Under the proposed transaction, DS Smith shareholders would receive shares in the US company.
January 2025: European approval and completion
On 24 January 2025, the European Commission conditionally approved the acquisition. The approval required the divestment of five plants to address competition concerns in certain local markets for corrugated sheets and boxes in France, Portugal and Spain.
The acquisition was completed on 31 January 2025. International Paper then began integrating the two companies’ operations. In June 2025, the five plants covered by the competition remedies were sold to Germany’s PALM Group.
January 2026: A plan to separate the businesses
On 29 January 2026, International Paper announced a new strategic plan to create two independent publicly traded companies organised by region. The North American business would include International Paper’s legacy operations and DS Smith assets in North America. The new EMEA Packaging business would combine the companies’ operations across Europe, the Middle East and Africa.
The plan envisaged spinning off the EMEA business, with listings expected in London and New York. International Paper indicated a target timeframe of 12 to 15 months from the announcement, subject to approvals and other regulatory requirements. The company cautioned, however, that the timing and final structure were not guaranteed.
A strategy still evolving
The timeline highlights a significant change in the group’s structure: from acquiring and integrating DS Smith to planning a regional separation of the combined businesses. The 2026 plan does not reverse the acquisition; rather, it sets out a different future structure for the assets brought together by the deal.
This background helps explain subsequent developments concerning the future of the EMEA business. In October 2026, International Paper provided further updates on the strategic options being considered for the division.
