A major consolidation in the packaging industry. The global packaging industry continues its transformation with the announcement of the merger between International Paper and DS Smith, finalized on January 31, 2025. This operation creates a world-class player in paper and board packaging solutions. By combining their expertise, the two groups will strengthen their presence on the North American and Europe, Middle East and Africa (EMEA) markets, while focusing on a strategy of growth and profitability.
A new world leader in paper and cardboard packaging
The takeover of Britain's DS Smith by America's International Paper expands the range of paperboard and paper packaging solutions on offer, at a time when demand for plastic-free solutions continues to grow. With a presence in over 30 countries and a combined workforce of 65,000, the new entity boasts increased production capacity and sales strength. The aim of the merger is to streamline the activities of both entities, while enhancing their competitiveness in a constantly evolving market.
Industrial synergies and operations optimization
The integration of DS Smith's activities within International Paper will enable the pooling of skills and production capacities. This synergy should result in greater operational efficiency and increased capacity for innovation. The aim of the merger is to develop ever more efficient packaging solutions, in response to market demands and growing environmental regulations.
Five plant disposals in return
The agreement for the acquisition of DS Smith by International Paper has been submitted for approval to the various regulatory authorities concerned. This conditional approval led to strategic adjustments, including the divestment of certain assets in Europe to ensure balanced competition in the market. As part of this merger, International Paper has been forced to sell three mills in Normandy one in Portugal and another in Spain.
The operation, originally scheduled for 2024 is part of a drive to strengthen International Paper's presence in the sustainable packaging segment.
A transformation of the packaging market
This merger marks a significant step in the evolution of the packaging sector. It illustrates the trend towards consolidation of players to meet environmental and economic challenges. It remains to be seen how this new entity will influence the industry, and how competitors will react to this restructuring of the market.
