Merger and acquisition fever is one reason why the London market, as benchmarked by the FTSE 100 index, is reaching new all-time highs, not least because the rash of bids for London-listed companies suggests they are going cheap, and trade and private equity buyers are looking to make the most of the value that is on offer. However, it is the decision by paper and packaging giant Mondi to walk away from a bid battle for fellow FTSE 100 member DS Smith that catches the eye and offers encouragement to shareholders. After the lockdown home shopping inspired a boom in packaging plays, now the industry’s leading players are adapting to the bust. Mondi’s profits more than halved in 2023 and analysts have pencilled in another drop of around 10pc for 2024, with the withdrawal from Russia a contributing factor. However, the industry is not sitting still and suffering in silence. Capacity is being taken out, and consolidation between major players offers the prospect of further rationalisation. Smurfit Kappa is merging with America’s WestRock and another transatlantic deal is on the cards, thanks to International Paper making an all-stock offer for DS Smith in March. That trumped February’s all-share proposal from...