International Paper (IP.US) has made concessions to the European Commission in an attempt to secure its approval for the acquisition of European packaging giant DS Smith for £5.8 billion. The European Commission's website, updated on Friday, shows that International Paper submitted remedies on December 20, 2024. The Commission also set January 24 as the deadline for its decision on whether to approve the deal.It is reported that both International Paper and Mondi expressed interest in acquiring DS Smith in early 2024, triggering a bidding war for the company. After months of bidding and negotiations, International Paper eventually made a formal acquisition proposal on April 16, 2024, offering a total value of approximately £5.8 billion in a full-stock transaction. This proposal surpassed Mondi's initial bid, and Mondi subsequently announced its withdrawal from the bidding war, leaving International Paper as the final buyer.In April 2024, DS Smith announced its merger plans with International Paper, aiming to create a global leader in sustainable packaging solutions and gain a more significant position in the European and North American markets. Under the agreement, DS Smith's shareholders will receive a portion of International Paper's shares, representing 33.7%, while International Paper's shareholders will hold the remaining shares. The transaction is expected to be completed in the first quarter of 2025, with DS Smith becoming a part of International Paper and expected to be listed on the secondary market of the London Stock Exchange.International Paper stated that the motivation behind acquiring DS Smith was primarily due to its focus on the European market. The European market has strict standards and high demand for sustainable packaging and high-quality paper products. Through the acquisition of DS Smith, International Paper not only gains direct access to this mature and profitable market but also leverages DS Smith's extensive business network and customer base in Europe to enhance its competitiveness in the global paper and packaging industry.Moreover, the increasing global demand for sustainable packaging solutions in recent years, coupled with the widespread emphasis on ESG (environment, social, and corporate governance) management by mainstream European and American companies, will help International Paper better respond to market trends and customer needs, enhancing the company's overall sustainability and innovation capabilities.