Jan 29 (Reuters) - International Paper ( IP ) said on Thursday it would split into two publicly traded companies by spinning ‌off its European packaging business.

Shares of ​the paper and packaging producer ‍were up about 5% ⁠in premarket ⁠trading.

The company, which makes up for ‌roughly one-third of ​the North American corrugated packaging market, bought London-based rival ⁠DS Smith ‍in ​a $7.22 billion deal last year and has been making a series ‍of divestitures and asset sales in Europe linked to the acquisition.

Demand for box shipments in key regions such ​as ‍North America and Europe has slowed against the backdrop ​of cautious consumer spending, weak housing market and uncertainties stemming from tariffs and other trade policies.

International Paper ( IP ) said the separation was expected ​to be completed in 12-15 months.