Stock Plunge and Merger Announcement

Shares of Dublin-based packaging group Smurfit Kappa dropped by 11% during Tuesday’s market opening in London. This decline came after the company revealed its plans to merge with U.S. peer WestRock, creating a powerful force in the packaging industry.

Formation of Smurfit WestRock

The two companies will combine to form Smurfit WestRock, which is poised to become one of the largest packaging companies globally. The operations of the new entity will be managed through a holding company incorporated and domiciled in Ireland.

Listing and Shareholder Benefits

The newly formed company intends to seek a New York listing and obtain a standard listing on the London Stock Exchange. As part of the merger agreement, WestRock shareholders will receive one Smurfit WestRock share and $5 cash per share, equivalent to $43.51 per share.

CEO’s Perspective

Smurfit Kappa CEO Tony Smurfit, who will lead the combined company, expressed his excitement about the merger. He stated that the deal fills a significant gap in their portfolio, allowing them to enter the U.S. market and provide long-term benefits to shareholders.

Continuing Updates

Please note that this is a developing story, and further updates will be provided shortly.