On Split Announcement Day, $1.6 Billion Vanishes from U.S. Paper Stocks

International Paper Co. (IP) plunged 5.99% on the New York Stock Exchange, closing at $39. In a single day, it erased about $1.16 billion in market value (roughly KRW 1.6 trillion), bringing its total market cap to around $20.5 billion (approximately KRW 28 trillion). Trading volume topped 11.8 million shares, a sharp increase over its usual level.

On the 29th, local time, International Paper released its Q4 2025 results and officially unveiled a plan to split its North American business and its DS Smith/EMEA portfolio into two independent companies. After a year of major restructuring in 2025—including the closure and sale of dozens of paper mills—management emphasized that the spin-off will accelerate region-specific growth strategies and bolster profitability.

Headquartered in Memphis, Tennessee, International Paper is one of the world’s largest corrugated packaging and containerboard producers. Having completed its roughly $9.9 billion acquisition of the UK’s DS Smith in 2025, it emerged as a packaging giant spanning North America and Europe. To win regulatory approval for the deal, the company divested several European corrugated board mills, reshaping its portfolio. The planned split is viewed as a follow-up measure to enhance both profitability and growth post-regulatory compliance.