Smurfit Kappa and WestRock in discussions regarding merger

Two of the world’s largest packaging producers, Smurfit Kappa and WestRock, are discussing the key terms of a potential merger to create Smurfit WestRock – a company that would reportedly be worth around $20bn.

Smurfit WestRock would be incorporated and domiciled in Ireland with global headquarters in Dublin, Ireland and North and South American operations headquartered in Atlanta, Georgia.

Any such combination would result in WestRock shareholders receiving consideration consisting primarily of shares of the combined group. The boards of Smurfit Kappa and WestRock believe the merger could result in the creation of the global “Go-To” packaging partner of choice. The reasons they give for this assumption, in their own words, are as follows:

• Combining two highly complementary portfolios to create a global leader in packaging
• Unparalleled geographic reach across 42 countries with a significant presence across both Europe and the Americas
• Complementary portfolios with unique product diversity and innovative sustainability capabilities, with breadth and depth across renewable, recyclable and biodegradable packaging solutions
• Culturally aligned with a strong customer focus
• Broader opportunities for approximately 100,000 employees
• Improved operating efficiency and increased returns across over 500 converting operations and 67 mills
• Shared sustainability ambitions for a sustainable future
• Experienced management teams with strong track records of execution and delivery to support global operations
• Immediate and long-term value creation opportunity for both sets of shareholders.

Smurfit WestRock’s ordinary shares would be listed on the New York Stock Exchange (NYSE) and the new group says that it would seek U.S. equity index inclusion as soon as possible thereafter.

Any potential combination would be conditional upon the approval by shareholders of Smurfit Kappa and WestRock and receipt of required regulatory clearances as well as other customary conditions.

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