03:43 AM EDT, 04/16/2024 (MT Newswires) -- International Paper Company ( IP ) said Tuesday it has reached a deal to acquire packaging company DS Smith in a stock deal worth about $9.9 billion.

Under the terms of the deal, the company will issue 0.1285 common shares for each DS Smith share held. Upon closing, current International Paper ( IP ) shareholders will own 66% of the combined company, while DS Smith shareholders will own the remaining 34%.

The deal is expected to be accretive in the first year and to generate synergies of at least $514 million. Closing of the deal is expected to occur in Q4, subject to shareholder and regulatory approvals, according to the company.

International Paper ( IP ) also said it plans to seek a secondary listing in London.