EU Approves DS Smith's Acquisition of SCA's Packaging Operations

The European Commission has approved DS Smith's (U.K.) acquisition of SCA's (Sweden) packaging operations, excluding the two kraftliner mills in Sweden. The purchase price amounts to EUR 1.7 billion on a debt free basis. The operations have approximately 12,000 employees.

Jan Johansson, president and CEO of SCA, noted that "the most important condition for finalizing the deal has now been fulfilled. Today's decision by the EU will enable SCA to continue to strengthen and consolidate its positions in the hygiene and forest products areas."

The Commission has conditioned the decision to DS Smith making some divestments after the acquisition. SCA's packaging operations will be transferred to DS Smith's ownership in connection with the closing of the deal, which is expected to take place according to schedule.

TAPPI
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