Loading prices...

Register/Sign in
ScrapMonster
Are ads getting in your way? Register for Ad-free pages and live data.
Get an instant offer on your damaged car
Paper Recycling September 07, 2023 02:30:15 PM

Smurfit Kappa in Talks with WestRock to Create Paper and Packaging Giant

Paul Ploumis
ScrapMonster Author
The merger would be "a good cultural fit" with a strong focus on an innovation-driven expansion of the group's sustainable packaging business, they said in a research note.
Smurfit Kappa in Talks with WestRock to Create Paper and Packaging Giant

SEATTLE (Scrap Monster): Smurfit Kappa is in discussions to merge with U.S. rival WestRock (WRK.N), the Irish firm said on Thursday, in a tie-up of two of the world's largest paper and packaging producers.

The combined entity would be named Smurfit WestRock and domiciled in Ireland with its global headquarters in Dublin, Smurfit said in a statement. It would be listed on the New York Stock Exchange.

It did not disclose the possible financial terms of a deal and said definitive terms would be set out in a further announcement. Any deal would be subject to shareholder approval, due diligence and regulatory approval, it said.

WestRock shareholders would receive shares in the combined group, Smurfit Kappa said. Smurfit Kappa's Irish-listed shares were down 2.16% at 0900 GMT.

Smurfit, which operates in 22 European countries and 13 in South, Central and North America, is Europe's largest paper and packaging producer. WestRock is the second largest packaging company in the U.S.

At current market prices, the combined market capital of the two firms would be around $19 billion. They had combined revenue of $34 billion in the 12 months to the end of June.

Research analysts at Credit Suisse said the proposed combination had significant strategic and operational merits and strengthens the company's Americas presence, especially in faster-growing Central America.

The merger would be "a good cultural fit" with a strong focus on an innovation-driven expansion of the group's sustainable packaging business, they said in a research note.

The combined entity, which would have around 100,000 employees, could log pre-tax cost savings of more than $400 million on an annual run-rate basis at the end of the first year following the completion of the deal, said Smurfit.

The tie-up would require one-off cash costs of approximately $235 million, it added.

The deal would offer "complementary portfolios with unique product diversity and innovative sustainability capabilities, with breadth and depth across renewable, recyclable and biodegradable packaging solutions", the Smurfit statement said.

Courtesy: www.reuters.com

 

Are ads getting in your way? Register for Ad-free pages and live data.

How to Recycle

Proper Disposal of Alkaline Batteries

Proper Disposal of Alkaline Batteries

Improper disposal of alkaline batteries can result in various negative consequences. Explore our blog post to discover safe disposal methods.
Christmas Tree Recycling - Responsible Ways

Christmas Tree Recycling - Responsible Ways

Proper preparation and using a reliable Christmas tree recycling directory ensures responsible disposal and maximizes the benefits.
Stop Throwing Away LED Light Bulbs -- Do This Instead

Stop Throwing Away LED Light Bulbs -- Do This Instead

Stop throwing away LED light bulbs and dispose of them responsibly. Proper disposal ensures environmental safety and sustainability.
powered by RecyclingMonster
Are ads getting in your way? Register for Ad-free pages and live data.
×

Quick Search

Advanced Search