Packaging company DS Smith will transform itself into Europe’s second biggest company in its sector with an ambitious 1.3 billion pounds ($2.04 billion) takeover of SCA Packaging.
DS Smith, which currently has a market value of around 890 million pounds, plans to raise 466 million pounds to finance the transaction.
The deal will bring it access to new geographical markets for its recycled paper and cardboard across continental Europe.
Miles Roberts, chief executive of DS Smith,
told CNBC: “The deal is only possible with huge support from our shareholders. The business has been performing very well because the market’s going in our direction.”
He added that the company had consulted its major shareholders and was “delighted” with the support they had received. Standard Life, which owns 14.6 percent of DS Smith stock, said publicly that it has approved the transaction.