Mondi plots £10bn packaging giant with renewed approach for rival DS Smith

08 February 2024 , 12:23

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Mondi has proposed a merger with packaging rival DS Smith (Image: PA Media)

London's Mondi has proposed a merger with rival DS Smith, potentially creating a packaging giant worth more than £10 billion.

This proposed deal comes three years after Mondi reportedly considered an approach for its rival. DS Smith released a statement to investors. It said: “The board of DS Smith notes the recent media speculation and confirms that it has received a highly preliminary expression of interest from Mondi plc regarding a combination with DS Smith.

“The board of DS Smith understands that Mondi is considering a possible offer for DS Smith although no proposal has been received at this stage. There can be no certainty as to whether any proposal will be made or the terms of any such proposal. A further announcement will be made if and when appropriate.”

The potential deal sent DS Smith shares soaring by up to 15% at one point. If successful, the merger would combine two packaging companies with a combined market value of around £10.4 billion.

In February 2021, Bloomberg reported that Mondi was considering a £5 billion takeover of DS Smith. At the time, the packaging industry was reaping the rewards of a surge in online deliveries during the pandemic, leading to an increased demand for packaging materials. Mondi now has until March 7 to announce a solid plan to bid for DS Smith or confirm that it will not be making an offer.

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