The boards of Mondi PLC and DS Smith PLC have agreed in principle on the key financial terms of a possible merger.
“The combination is an exciting opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions, with complementary geographic footprints, leading customer relationships, a strong balance sheet and cash flow profile, and the potential to deliver substantial benefits to respective shareholders, customers, employees and related stakeholders,” according to a news release about the deal.
Reuters reports that the all-share offer by Mondi to buy DS Smith equates to $6.57 billion.
Mondi’s Andrew King would be the CEO; Mondi’s Mike Powell, CFO; and Mondi’s Philip Yea, chair of the enlarged Mondi Group. Three nonexecutive directors of DS Smith are expected to join the enlarged Mondi Group Board.