10:35 AM EST, 01/24/2025 (MT Newswires) -- International Paper ( IP ) said Friday that the European Commission has granted phase 1 clearance for the company's planned merger with DS Smith, conditional upon certain divestments.

The company said the approval requires it to divest three box plants in France and one each in Spain and Portugal. Completion of the divestments is not a condition to the merger's closing, the company added.

In a statement Thursday, the European Commission said the merger can only be implemented after it approves a buyer of the divested businesses in a separate procedure.

The Commission said International Paper's ( IP ) commitments to divest the five box plants "fully address the competition concerns" raised earlier by eliminating the overlaps between the companies' corrugated cases operations.

International Paper ( IP ) and DS Smith announced their planned all-share merger in April and expect the scheme of arrangement to be effective Jan. 31.

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