Smurfit Kappa in merger talks with US peer WestRock

by | Sep 7, 2023

(Sharecast News) – Paper and packaging company Smurfit Kappa confirmed on Thursday that it is in merger talks with US peer WestRock.
No financial details were given but a report by the Wall street Journal suggested the combined group could be worth around $20bn.

Smurfit said the potential combination would involve the creation of a new holding company, Smurfit WestRock. This would be incorporated and domiciled in Ireland with global headquarters in Dublin, and North and South American operations headquartered in Atlanta, Georgia.

“Discussions between the parties remain ongoing regarding the potential combination,” Smurfit said.

“Smurfit Kappa and WestRock are engaged in a mutual due diligence process. The definitive terms and conditions of any transaction will be set out in a further announcement.”

The companies are targeting annual pre-tax run-rate cost synergies in excess of $400m at the end of the first full year following completion.

Smurfit said a potential deal is expected to deliver “compelling benefits” to shareholders of the combined entity, “with transaction structure providing the opportunity for both sets of shareholders to participate meaningfully in Smurfit WestRock’s significant upside value potential”.

Related articles

Ryanair passenger numbers jump 9% in December

Ryanair passenger numbers jump 9% in December

(Sharecast News) - Budget airline Ryanair reported a 9% jump in December passenger numbers on Wednesday. Traffic rose to 12.54 million from 11.52m in the same month a year earlier, while the load factor - which gauges how full the planes are - ticked down to 91% from...

Wizz Are passenger numbers soar in December

Wizz Are passenger numbers soar in December

(Sharecast News) - Hungary-based budget airline Wizz Air reported a strong rise in December passenger numbers as demand continued to rebound from the Covid pandemic. The company on Wednesday said it carried 4,964,857 passengers, an 18.8% increase year on year. For the...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!