US renewable fibre-based packaging, pulp and paper products manufacturer International Paper Company has decided not to make a takeover offer for Irish packaging giant Smurfit Kappa Group after months of attempts to acquire the company.
The decision comes in the wake of the lack of engagement by Smurfit Kappa’s board of directors and management.
In February and March this year, International Paper made two acquisition proposals to representatives of Smurfit Kappa’s board of directors.
The first offer comprised €22 and 0.3 shares of International Paper common stock for each Smurfit Kappa ordinary share and it was later revised €25.25 in cash and 0.3028 shares, valuing the company at around $11bn.
Both the offers were turned down by Smurfit Kappa.
International Paper chairman and CEO Mark Sutton said: “While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders.
“Moving forward, we remain focused on executing our strategy and are excited about our outlook. We have many levers to create shareholder value and will be responsible stewards of our shareholders’ capital.”
The company noted that the revised proposal in March was a highly attractive proposition for Smurfit Kappa and offered a platform to determine the full value potential of the combination.
International Paper operates through manufacturing facilities in North America, Latin America, Europe, North Africa, India and Russia.