International Paper Co. has announced a significant acquisition of DS Smith Plc, agreeing to a purchase price of 415 pence per share, which totals approximately $9.9 billion. As part of the acquisition terms, International Paper shareholders will hold a 66.3% stake in the merged entity, while DS Smith shareholders will retain 33.7%.

This major transaction is scheduled for completion by the fourth quarter of 2024. Post-merger, Andrew Silvernail, currently CEO of International Paper, will lead the combined company, which will be headquartered in Memphis, Tennessee. Additionally, DS Smith’s CEO, Miles Roberts, will transition to a consulting role to aid with integration processes.

Furthermore, the combined entity plans to list its primary shares on the New York Stock Exchange with a secondary listing on the London Stock Exchange. However, the merger is expected to result in the reduction of about 400 jobs as part of integration efforts.

The market reacted to this news with DS Smith’s (LSE:SMDS) stock dropping 3.32%, indicating investor reservations about the deal or concerns over the job cuts.