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DS Smith (BBB-): Agrees to be Acquired by International Paper

BASIC INDUSTRIES

All-share merger valuing DS Smith at 415p per share which was the indicated bid level.

• Expecting to maintain IP’s current rating (Baa2/BBB).

• Expecting synergies of at least $514mn at a cost of c.$370mn.

• Combined 2023 pro forma adj. EBITDA of c.$4.1bn, a 14% uplift from synergies.

• Mondi has until April 23rd to make a bid.

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