UK's DS Smith shares jump on Mondi's $6.5 bln bid
DS Smith's shares jumped to their highest level in more than a year after Mondi reached an agreement in principle for an all-share offer to buy DS Smith.
IGTV's Angeline Ong also explains why a bullish hammer formation indicates a potential change in direction for Mondi’s shares.
(AI Video Summary)
DS Smith's share price reaches highest level in a year following Mondi deal
DS Smith's shares have reached their highest level in a year after a big business deal worth $6.5 billion with Mondi. This good news can be seen in the form of a "green candle," which is a positive sign that investors are reacting well to the deal between two big packaging companies, which has been talked about in the packaging industry for a while. This is a smart move by these companies, as they want to establish a strong presence in a market that is expected to grow even more with the entrance of new players like Taemoon Alibaba from China joining the Amazon marketplace.
What does this deal mean for the companies' shares?
This merger between Mondi and DS Smith is very important because it will create a packaging company that is valued at over £11 billion. When we look at Mondi's share price, it's gone down a little bit, but what's interesting is that there is a pattern called a "bullish hammer." This pattern shows that the stock could do well in the future because the candlestick is wider than the body. Essentially, after this deal, Mondi is looking positive. DS Smith's shares are also going up and are currently at their highest level in over a year.
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