U.S.-based International Paper secured EU clearance for its 5.8-billion-pound ($7.2 billion) acquisition of UK rival DS Smith with a pledge to sell assets to address competition concerns. International Paper is seeking to boost its European presence in the paper and packaging sector with the deal amid consolidation in the industry.

International Paper (IP) won European Union approval for its planned £5.8 billion ($7.2 billion) of DS Smith (DSSMY)

Sustainable packaging solutions provider International Paper (IP) is set to receive approval from the EU for its £5.8bn ($7.12bn) acquisition of UK competitor DS Smith. Citing sources familiar with the matter, Reuters reported that the move comes after IP agreed to sell certain assets to resolve competition concerns.

The European Commission said that the parties’ offer to sell five of International Paper’s plants in Europe fully addresses its competition concerns over the deal.

BRUSSELS (Reuters) -U.S.-based International Paper is set to get EU approval for its 5.8 billion pound ($7.12 billion) purchase of UK rival DS Smith after agreeing to sell assets to address competition concerns,