Mondi Agrees on $6.5 Billion Packaging Deal for DS Smith (2)

Mondi Plc agreed to buy DS Smith Plc for £5.1 billion ($6.5 billion) in a deal that would create one of the world’s largest makers of packaging.

The all-stock deal has an implied value of 373 pence a share. That’s a 33% premium compared with DS Smith’s price on Feb. 7, the day before the company said it had received an initial approach from Mondi.

DS Smith rose as much as 7.6% early Friday, trading below the offer price at 344 pence, with Mondi down 3.4%.

If the in-principle agreement is completed, the combination would generate cost savings as well ...