Mondi considers £5 billion takeover of DS Smith
British packaging company Mondi is considering a potential takeover worth £5 billion of DS Smith.
Bloomberg reported this morning that share prices in DS Smith, which is in the FTSE 100, have risen by around 14 per cent and boosted the company’s market value to over £5 billion.
DS Smith provides recycling services as well as paper and packaging products to countries and businesses worldwide, predominantly in mainland Europe and the United States.
It is aiming for all of its products to be recycled or reused by 2030.
Mondi supplies paper and plastic products that meet sustainability requirements to the UK market, among others.
Mondi stated its annual profits have fallen by around one-third due to lower selling prices of pulp and paper grades during the pandemic.
As a result of the boom in online shopping over the past year, there has been an increase in used cardboard that can’t be collected and recycled quickly.
This increased demand in packaging products during this time has put a strain on packaging producers like DS Smith that rely on recycled materials for their products.
DS Smith and Mondi declined to comment on any speculation about the deal.