DS Smith shareholders approve SCA deal

The shareholders of UK-based recycled packaging giant DS Smith have approved the companys proposal to acquire Swedish firm SCAs packaging business.

The decision was made at DS Smiths general meeting today (February 3) which saw the original prospectus detailing the proposal passed without amendment.

The deal remains subject to clearance from the European Commission. Closure of the deal is expected during the second quarter of 2012.

DS Smith first announced plans for a 1.7 billion Euro reverse takeover of SCA on January 17 2012 (see letsrecycle.com story).

Commenting on todays result Miles Roberts, DS Smiths group chief executive, said: I am delighted to be able to announce this overwhelmingly positive result today and I would like to thank our shareholders for their approval of our proposed acquisition of SCA Packaging. The reaction of our staff and customers has been very positive.

He added: We continue to focus on integration planning with both teams looking forward to bringing our businesses together. Following completion of the proposed acquisition we will create the leading supplier of recycled packaging for consumer goods in Europe.

Takeover

The acquisition is hoped to give DS Smith stronger contacts with packaging users across Europe and will mean it will need to acquire more recycled material to meet demand.

The deal will also see SCA Recyclings MRF in Southampton pass over to DS Smith ownership as well as the companys 50% share in the Leicester Casepak MRF (see letsrecycle.com story).

The acquisition of the facilities would represent DS Smiths first move into sorting multi-material streams.

Itexcludes SCAs two kraftliner mills in Sweden as they are integrated with SCAs forest productions operations.

DS Smith has made a formal offer to acquire SCAs French packaging operations. The process is subject to an information and consultation procedure with the relevant works councils and is being treated as a separate matter.