International Paper has dropped its interest in acquiring corrugated board giant Smurfit Kappa.
The US paper packaging company attempted to take over Smurfit Kappa in March but its unsolicited bid was rejected.
A revised £7.8bn bid was made at the end of the month but that was also rejected, with Smurfit Kappa saying it did not value the group’s “true business worth”.
Some Smurfit Kappa investors had reportedly put pressure on the company to sell but now International Paper says it will not make a hostile bid.
Mark Sutton, chairman and chief executive of International Paper, said: “While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders.
”We remain focused on executing our strategy and are excited about our outlook. We have many levers to create shareholder value and will be responsible stewards of our shareholders’ capital.”
- A version of this report appeared in our sister title Packaging News