Share Prices & Company Research

Market News

25 Feb 2021 | 09:43

DS Smith shares soar as Mondi reportedly mulls bid

(Sharecast News) - Shares in UK paper and packaging firm DS Smith spiked on Thursday on reports rival group Mondi is considering a bid in what would be one of the largest British deals this year.

FTSE 100-listed Mondi has been speaking with advisers, Bloomberg reported citing unnamed sources. An acquisition of fellow blue-chip D S Smith, worth more than £5bn, would add another 30,000 to Mondi's 26,000- strong global workforce.

Shares in Smith were up 14% in early trade, and were 8% higher at 0942 GMT.

Consumers have turned to online shopping amid the pandemic, boosting demand for packaging companies as retailers grapple with increased deliveries.

D S Smith's shares have risen over 10pc in the past year - since before the pandemic - including 2.5% through 2021 so far, giving it a market value of £5.3bn.

According to data compiled by Bloomberg, a deal between the two rivals would be one of the largest in the UK this year. Deliberations are, however, at an early stage, without certainty they will lead to a buyout. Both firms declined to comment.

Mondi on Thursday said annual profits fell by a third on the back of "significantly lower" average selling prices for pulp and paper grades and the Covid-19 pandemic.

The company on Thursday said pre-tax profits for the year to December 31 fell 30% to €77m. Underlying core earnings declined 18% to €1.35bn, while revenue was down to €6.6bn from €7.2bn.

Mondi declared a total dividend of 60 euro cents a share, up 5% year on year.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.