The world’s largest and second-largest paper and packaging companies, Smurfit Kappa and WestRock, have confirmed they are in discussions over a merger worth $20bn.
The deal would create a new holding company, Smurfit WestRock, listed on the New York Stock Exchange but based in Ireland, with global headquarters in Dublin and regional headquarters in Atlanta, according to reports.
Smurfit would delist from the Irish and London stock exchanges, while WestRock shareholders would receive shares in the combined group.
The merger would create a “global leader in sustainable packaging” with operations in 42 countries and up to 100,000 employees, and target cost synergies of over $400m in the first year.
The boards of both companies said the merger would be the “global ‘go-to’ packaging partner of choice” and offer value creation for both sets of shareholders.
The deal is subject to shareholder approval and regulatory clearance, and the parties are engaged in mutual due diligence.
Smurfit Kappa acquires Saquarema, packaging plant in Rio de Janeiro