International Paper has revealed plans to split its business, forming two independent, publicly traded companies.

The decision will see the company's current North American operations remain under the International Paper name while its Europe, Middle East, and Africa (EMEA) packaging businesses will be spun off into a separate entity.

The North American operations will incorporate assets from both International Paper and DS Smith, which it acquired last year.

The company said that the split aims to allow each organisation to operate with its own management structure, investment approach, and regional focus.

Post-separation, International Paper will concentrate on its North American packaging division.

Leadership will remain unchanged, with Andy Silvernail as chairman and chief executive, and Lance Loeffler as chief financial officer.

The EMEA entity will consist of combined International Paper and DS Smith assets across 30 countries in the region.

Tim Nicholls is set to become chief executive of the new company. He has previously led DS Smith within International Paper.

David Robbie is expected to serve as chairman of the board, following his tenure as senior independent director at DS Smith and his upcoming position on the International Paper Board.

The transaction is expected to take the form of a spin-off, with International Paper retaining a “meaningful” shareholding in the new EMEA-based company.

The new company intends to seek listings on both the London Stock Exchange and the New York Stock Exchange.

Completion of the separation is targeted within 12-15 months, subject to regulatory approvals and standard closing conditions.

International Paper chairman and CEO Andy Silvernail said: "During the past year, we have created two regional powerhouses with scale, strong customer relationships, leading brands and talented teams.

"The two businesses operate in distinct market environments and are at different stages of their transformation. We have learned a lot about how to create value in each region. The next right step in our transformation journey to achieve full value creation potential is to create two independent, regionally focused companies.

"Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximise long-term value creation through enhanced focus on their unique opportunities and targeted investment approaches."