International Paper Agrees to Buy DS Smith for $7.2 Billion (3)

International Paper Co. agreed to buy DS Smith Plc for £5.8 billion ($7.2 billion), besting rival suitor Mondi Plc in the battle for the UK packaging company.

The all-stock transaction would create a global leader in packaging, International Paper said in a statement Tuesday. The US company agreed to pay 0.1285 new shares of International Paper for each DS Smith share, or about 415 pence based on the share prices of both companies as of late March, when the US company went public with its interest.

The formal agreement gives International Paper the backing of DS Smith’s board, though Mondi ...