US-based paper and packaging company International Paper is considering to acquire Smurfit Kappa, in a bid that could value the Irish packaging producer at approximately €8bn.
This is in line of a series of acquisitions of European companies by US rivals as the dollar's recent gains make these companies cheaper.
International Paper is considering an offer at approximately €36 a share if it did make a proposal, Sky News reported citing a source.
Smurfit Kappa provides paper-based packaging solutions worldwide, which includes containerboards, corrugated containers and other paper-based packaging products, such as solid boards, graphic boards and bag-in-box.
With 42,000 employees, Smurfit Kappa operates 350 production sites across 32 countries and generated approximately €8.1bn in revenues in 2014.
International Paper has appointed Deutsche Bank as the adviser on the possible bid for Smurfit.
Australian packaging company Amcor has also expressed interest in the acquisition of Smurfit Kappa.
In March, Smurfit Kappa agreed to acquire a non-integrated corrugated, folding cartons and flexible packaging manufacturer Grupo CYBSA for around $100m, which is expected to expand its presence in Central America, reports Irish Times.
CYBSA currently operates five packaging plants located in El Salvador and Costa Rica, from where it services a growing customer base in its domestic markets, along with Guatemala and Honduras.
Smurfit Kappa Group CEO Gary McGann previously said: "The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG's capacity to provide innovative, insight-led, differentiated and value enhancing packaging solutions to both current and prospective customers throughout the Americas."
Image: Smurfit Kappa operates 350 production sites across 32 countries. Photo: courtesy of Smurfit Kappa Group.