Irish Smurfit Kappa ‘approached’ by International Paper for £6bn takeover

It is now widely speculated that International Paper are making a move to acquire Smurfit Kappa. As stated in The Telegraph:

‘The US rival is believed to have held talks with Deutsche Bank advisers over making a bid for the Dublin-based firm, which is also listed in London and specialises in corrugated paper-based packaging.

Smurfit, which had revenues of £5.8bn in 2014, is Europe’s largest paper-packaging supplier. The company’s equity could be valued at more than £6bn in the event of a takeover bid from International Paper, which has a market capitalisation of nearly £16.4bn.

The proposition is the latest in a series of high-profile takeovers, including Shell’s £47bn acquisition of BG – the largest deal between two British companies so far. The deal will create a £200bn oil and gas giant, and is the biggest takeover in the sector for 17 years. Heinz is also set to merge with Kraft to create the fifth biggest food company in the world, known as The Kraft Heinz Company, in a deal worth $68.3bn.

Memphis-based International Paper announced its intention last month to invest $135m to convert a mill in North Carolina to softwood pulp and fluff production – used in nappies – resulting in numerous job losses.’

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