International Paper: Combination With DS Smith To Generate Significant Synergies

(RTTNews) - International Paper Company issued an update on its possible offer for DS Smith plc. The Directors believe that the combined International Paper and DS Smith can deliver at least $514 million of pre-tax cash synergies on an annual run-rate basis by the end of the fourth year following completion of the combination. International Paper expects that the total costs to achieve the synergies would be approximately $370 million. International Paper confirmed that significant progress has been made in reciprocal due diligence.

As part of the combination, any new International Paper shares issued to DS Smith shareholders will be authorised for primary listing on the New York Stock Exchange.