Incorporated and domiciled in Ireland, Smurfit WestRock will set up its global headquarters in Dublin, Ireland, and operations for North and South America will be based in Atlanta, Georgia
Smurfit Kappa to merge with WestRock Company. (Credit: Smurfit Kappa)
Paper and packaging giants Smurfit Kappa Group and WestRock Company are in talks to negotiate the key terms of a potential merger to create Smurfit WestRock, a global sustainable packaging company worth about $19bn.
Smurfit WestRock will set up its global headquarters in Dublin, Ireland, and operations for North and South America will be based in Atlanta, Georgia. The company would be incorporated and domiciled in Ireland.
The Irish scheme of arrangement involving Smurfit Kappa and the merger of a subsidiary with WestRock would be used to carry out the potential combination.
Smurfit Kappa said that the shareholders of WestRock would receive consideration from any such combination that would principally consist of shares of the Combined Group.
The firm added that final terms will be disclosed in a subsequent release but did not provide any information regarding potential financial terms.
Smurfit, which operates in 22 European countries and 13 in the Americas, claimed that the merger is subject to regulatory approvals, due diligence, and shareholder approval.
The deal is intended to combine two highly complementary portfolios to create a global company in sustainable packaging with a presence in both Europe and the Americas.
It will also improve operation efficiency and enhance returns over 500 converting operations and 67 mills, Smurfit Kappa said.
The Boards of both companies believe that the potential combination is anticipated to deliver compelling benefits to Smurfit WestRock shareholders.
Upon completion of the merger, Smurfit WestRock will be listed on the New York Stock Exchange (NYSE).
The combined entity is expected to have around 100,000 employees.
The combined market capital of the two firms would be roughly $19bn based on current market values. In the 12 months ending in June, they generated $34bn in total revenue.
Additionally, Smurfit Kappa’s premium listing on the London Stock Exchange (LSE) will be cancelled and the combined group is projected to list on the standard listing segment. The firm will also de-list from Euronext Dublin.