daveh wrote:Mondi have now made an announcement:
If it goes ahead it will be an all-share offer.
https://www.investegate.co.uk/announcem ... n-/8029271atement Regarding Possible All Share Combination With DS Smith Plc
Mondi plc ("Mondi") notes the recent announcement by DS Smith plc ("DS Smith").
Mondi confirms that it is in the early stages of considering a possible all share combination with DS Smith.
Mondi routinely considers various options within its disciplined capital allocation framework aimed at accelerating its growth in the structurally growing packaging sectors in which it operates.
Mondi believes that a possible all share combination with DS Smith represents an exciting opportunity to create an industry leader in European paper-based sustainable packaging solutions:
well positioned to benefit from structural growth trends in sustainable packaging;
benefitting from enhanced vertical integration, bringing with it a balanced paper position, greater earnings resilience through the cycle and enhanced security of paper supply, for the benefit of both shareholders and customers; and
benefitting from substantial synergies as a result of vertical integration alongside highly complementary positions and expertise in containerboard, corrugated solutions and flexible packaging, in addition to expected benefits from economies of scale and efficiencies across a combined supply chain and administration.
Not an especially sparkling verdict so far from Mr Market. As far as I can see, neither Mondi nor DS Smith have set the house on fire with share price appreciation. I hold some SMDS and will probably sell out since I don't really want shares in Mondi. Probably going to sell and buy a vanilla IT.