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DS Smith Expects a Buyout Offer from Rival Mondi

According to Reuters, british packaging group DS Smith said on Thursday that its larger rival Mondi was considering making a buyout offer for the company, but added it had not received a proposal.

DS Smith had a market value of about 3.86 billion pounds ($4.87 billion) as of Wednesday’s close. Its stock price jumped more than 9% on the news on Thursday, while Mondi’s shares fell by 1.8%.

A combination between Mondi and DS Smith could create a paper and packaging giant with a market value of more than 9.96 billion pounds ($12.58 billion).

A possible deal, although not certain, would follow close on the heels of Smurfit Kappa’s SKG.I $11 bln purchase of WestRock. That deal has not closed yet.