International Paper has made the clearest indication yet that doubts are fading over its pending combination with FTSE 100-listed packaging multinational DS Smith PLC (LSE:SMDS).
Updating shareholders in a second-quarter trading statement, New York-listed International Paper’s recently appointed chief executive Andy Silvernail said he looks forward “to the combination with DS Smith and together creating significant value for our shareholders”.
International Paper has already sunk US$17 million into the planned combination, although question marks appeared above the deal in May.
DS Smith initially agreed to be taken over by International Paper for £5.8 billion in April until International Paper itself became the target of a takeover bid, this time from Brazilian paper and pulp giant Suzano.
Those talks ultimately collapsed in June, paving the way for the combination to go ahead.
International Paper’s cautionary statements cite “our proposed business combination with DS Smith Plc and our ability to integrate and implement our plans, forecasts, and other expectations with respect to the combined company” as potential risks to forward earnings.