London, England 15 November 2018 -- DS Smith to divest three corrugated facilities in France and Portugal in order to address the European Commissions's competition concerns.
The European Commission (EC) has approved the acquisition of Europac by DS Smith. The company received EC approval for the €1.67bn deal under the condition that it divests Europac's corrugated sheet and box plant in Ovar, Portugal as well as the DS Smith plants DSS Normandie and DSS Normandy (Cabourg) in France. DS Smith will also transfer or assign the applicable customer contracts along with the divested plants.
With these divestments, the company addresses the Commission's concerns that the proposed acquisition would significantly reduce the level of competition in the market for corrugated sheets and cases, in Portugal, as well as in the market for corrugated cases in Western France, in view of the strong combined market position of DS Smith and Europac and the loss of competitive constraint that the transaction would cause, the EC announced.
Following the clearance, DS Smith expects to complete the acquisition of Europac by the end of 2018.