International Paper negotiates direct sale of its EMEA business in parallel with the DS Smith spin-off

The future of International Paper's European packaging business is taking a new turn. Just days after detailing plans for the spin-off that would return DS Smith to the markets as an independent company, the US paper giant has officially confirmed that it is in talks with potential buyers for the direct sale of its EMEA Packaging division.

The confirmation, issued in mid-October 2026, responds to a series of unsolicited approaches from private equity firms. According to recent financial reports, entities such as Lone Star and Atlas Holdings are exploring bids in the region of $6 billion for the European assets. International Paper has stressed that this sale process is at an early stage and that there is no certainty that a definitive agreement will be reached or completed.

A dual-track strategy for European assets

The relevant aspect for the corrugated cardboard and packaging industry is the dual-track strategy adopted by the corporation. While evaluating these buyout offers, International Paper continues to advance in parallel with the original plan announced in January 2026: the separation of the EMEA business through a listing on the London Stock Exchange and a Level II ADR program on the New York Stock Exchange.

This division concentrates the combined operations in the region, heavily built on the $7.2 billion acquisition of DS Smith. The leadership team for the prospective independent company, including future CEO Tim Nicholls and CFO Vincent Bonnot, is still scheduled to host a Capital Markets Day in London in early November 2026 to outline the growth strategy post-separation.

The final decision will determine whether the European packaging market witnesses the rebirth of DS Smith as an independent public entity or whether these strategic assets pass into the hands of private investment funds. A direct sale to private equity could trigger a new wave of consolidation, operational restructuring, and strategic shifts in the continent's highly competitive paper and board sector.