DS Smith has sold its two packaging businesses in France and Portugal to US company International Paper for €63m.
In having its businesses purchased by International Paper, DS Smith has fulfilled its commitment to the European Commission (EC) as part of the clearance that was required for it to acquire Papeles y Cartones de Europa (Europac).
The UK-based company’s €1.904bn deal to buy Europac was completed in January this year.
DS Smith chief executive officer Miles Roberts said: “We are delighted to have completed this transaction, which ensures that the business and colleagues have found a good home at an attractive price for the business.
“The integration of Europac is progressing well and we are very pleased with the quality of our customer offering in the region.”
According to the EC, the deal would reduce the level of competition in the corrugated sheets and cases market in Portugal, as well as the trading arena for corrugated cases in Western France, given that the merged entity would face limited constraints from competitors.
In a move to address this concern, the commission has asked DS Smith to close Europac’s box plant in Ovar, Portugal, along with two more of its sites in France.
The Europac’s box plant manufactures corrugated sheets and cases in Portugal, while the two DS Smith plants, DSS Normandie, and DSS Normandie (Cabourg), manufacture corrugated sheets and cases for supply in Western France.
Last month, DS Smith Plastics opened a new office building in Atlanta, Georgia, US, in order to expand the company’s presence in North America.