A potential sale now sits beside International Paper's planned spin-off of its Europe, the Middle East and Africa (EMEA) packaging business; the company disclosed buyer talks but said neither path is guaranteed. On Oct. 15, it said unsolicited approaches had led to discussions with potential buyers, which remain at an early stage. International Paper added that spin-off preparations are continuing.
The separation plan dates to Jan. 29, when International Paper outlined a restructuring into separate public companies for North America and EMEA. The EMEA entity would combine legacy International Paper and DS Smith assets. The company said the split would let each operation use management, business models, investment plans and capital-allocation strategies suited to its own market. At the time, it expected the separation to take 12 to 15 months, subject to conditions.
An Oct. 14 update identified the proposed EMEA company as DS Smith plc and said it is expected to list on the London Stock Exchange. It also outlined a Level II American depositary receipt (ADR) program on the New York Stock Exchange. Completion remains dependent on board approval, regulatory filings and other conditions. The update said completion was not assured, and International Paper has cautioned that it cannot guarantee the separation's timing or structure.
Separately, the Financial Times reported, citing people familiar with the matter, that Lone Star and Atlas Holdings were each considering a bid. The report said the proposals could imply a value below $6 billion. International Paper has not confirmed the reported bidders or disclosed a price for the business.
The next scheduled event is DS Smith's Capital Markets Day on Nov. 3 in London. Leaders are due to discuss the planned company's business model, growth strategy and financial outlook from 8 a.m. to noon ET (1 p.m. to 5 p.m. GMT).
