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Smith (DS) (SMDS)

Share Price:
Down 330.10p
Change Today:
-2.50p
Market Cap:
4,528.81m

CMA raises concerns over Liqui-Box's proposed takeover of DS Smith unit

19 Jul 19

LONDON (ShareCast) - (Sharecast News) - The Competition and Markets Authority said on Friday that Liqui-Box's proposed takeover of DS Smith's rigid and flexible packaging business could leave food and drink suppliers worse off.
As part of its initial, Phase 1 investigation into the takeover, the watchdog found that Liqui-Box and DS Smith are two of the four main companies in the UK offering a specialist type of packaging called Bag-in Box to food, wine, dairy and drink suppliers.

"If the deal is allowed to go ahead as planned, the CMA is concerned it could create insufficient competition in the supply of these products, leading to their customers potentially having less choice and paying higher prices, especially as there are very few large suppliers in the UK," it said.

It also highlighted concerns that the reduction in competition could lead to lower quality products and/or a poorer service.

If the businesses are unable to address the CMA's concerns, the deal will be referred for an in-depth Phase 2 investigation.

US-based flexible packaging solutions company Liqui-Box agreed back in March to buy the division from DS Smith.

At 0815 BST, DS Smith shares were down 0.8% at 360.40p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Market Data

Currency UK Pounds
Price 330.10p
Change Today -2.50p
52 Week High 510.60p
52 Week Low 292.20p
Volume 1,973,544
Shares Issued 1,371.95m
Market Cap 4,528.81m

Dividends

  Latest Previous
  Final Interim
Ex-Div 03-Oct-19 04-Apr-19
Paid 01-Nov-19 01-May-19
Amount 11.00p 5.20p