Grand manoeuvres in recycled packaging

DS Smith Plc has recently announced the proposed purchase of the packaging division of Svenska Cellulosa Aktiebolaget (SCA Packaging), with the exception of the kraftliner activities, for a net amount of approximately 1.6 billion euro.

The proposal includes a formal offer of purchase of the French companies belonging to SCA Packaging.The operation has caused a stir: SCA Packaging is the second European player of the packaging sector and, if the merger goes head, DS Smith will be very close to its stated objective of becoming the leading supplier of recycled packaging for the consumer goods industry in Europe.More specifically, the Board of Directors of the English group (DS Smith is based in London) states that the acquisition of SCA Packaging - complementary in terms of product range and geographical location - will enable access to new outlet areas on the continent, facilitating the provision of products and services suited to the dislocation and size of strategic customers, while bringing benefit from the extension of the Group structure and possible synergies. «SCA Packaging has made excellent investments in production and occupies an established position in the field of recycling and packaging, with a limited production of paper, which blends very well with our strengths», said Gareth Davis, president of DS Smith. Who concludes: "Hence joining forces provides a not-to-be-missed opportunity to create a unique combination of prospective logic, financial opportunities and best service on an international scale».