By Ian Walker
Smurfit Kappa Group has confirmed that it is currently engaging in discussions with WestRock Co. regarding a potential merger. The Wall Street Journal reported late on Wednesday that the companies are exploring a move that could result in the creation of a global paper and packaging powerhouse valued at around $20 billion.
Creating a Global Leader in Sustainable Packaging
London and Dublin-listed Smurfit Kappa stated on Thursday that the two companies are in talks about the key terms of a potential combination that would establish Smurfit WestRock, a “global leader in sustainable packaging.”
The discussions revolve around the creation of a new company called Smurfit WestRock, which would be formed through the merger of Smurfit Kappa with a subsidiary of WestRock. In this scenario, WestRock shareholders would receive shares in the newly combined group.
Potential Changes to Stock Listings
If the merger proceeds, Smurfit WestRock would be listed on the New York Stock Exchange. However, Smurfit Kappa’s premium listing on the London Stock Exchange would be cancelled, and the combined group would no longer be available on the standard segment of the LSE. Additionally, Smurfit Kappa’s listing on the Euronext Dublin would be cancelled.
Ongoing Discussions and Due Diligence
“Discussions between the parties remain ongoing regarding the potential combination. Smurfit Kappa and WestRock are engaged in a mutual due diligence process,” stated Smurfit Kappa.
Impressive Financial Performance
As of June 30, the combined companies generated revenue of $34 billion and achieved adjusted earnings before interest, taxes, depreciation, and amortization of $5.5 billion.
