According to multiple media reports, the planned merger between International Paper and DS Smith has received approval from the European Commission.
The approval comes with significant conditions. The Commission’s Phase I decision requires International Paper to divest several box plants in France, Portugal and Spain to address competition concerns. The assets earmarked for sale include facilities in Mortagne, Saint-Amand and Cabourg in France, Ovar in Portugal and Bilbao in Spain.
The merger, which will result in the creation of one of the world’s largest paper-based packaging groups, takes place against a backdrop of rising costs and structural pressures in the paper and packaging sector. The EU’s requirement to sell assets reflects concerns that the combined company could otherwise dominate certain regional markets.
“We would have preferred to retain these sites, but we are confident we will find suitable buyers,” said Andrew Silvernail, CEO of International Paper.
He added that the merger is expected to strengthen the company’s position, particularly in North America and the EMEA region.
Both companies present sustainability as a key rationale for the merger. International Paper highlights targets to reduce greenhouse gas emissions by 35 per cent and to rely entirely on sustainably sourced or recycled fiber.
DS Smith, for its part, promotes circular business models and aims for all packaging to be recyclable or reusable. The company has also set targets to reduce plastic use in retail and eliminate landfill waste.
Yet, questions remain about how far such commitments translate into real-world impact. The packaging industry remains heavily dependent on energy, logistics and raw materials, meaning emissions and resource consumption are still substantial.
The merger, therefore, raises broader questions about whether consolidation leads to meaningful environmental improvements – or primarily strengthens market control in an already concentrated sector.
International Paper, headquartered in Memphis, Tennessee employs around 39,000 people globally and reported revenues of over 21 billion dollars in 2022. It is one of the largest producers of fibre-based products globally.
DS Smith, founded in London, England in 1940, has approximately 30,000 employees and operates in 37 countries. The company reported revenues of just over $10B in 2023 and focuses on recyclable packaging solutions.
The combined entity is expected to have a strong presence across Europe and North America, potentially reshaping competition in the global packaging market.
Whether the merger delivers on its stated sustainability ambitions remains uncertain, particularly as regulatory scrutiny and cost pressures continue to intensify.
