Following the announcement that it would merge with American rival WestRock to create an industry behemoth, shares of Dublin-based packaging group Smurfit Kappa fell 10% at Tuesday’s market opening in London.
Smurfit WestRock, one of the biggest packaging companies in the world, will be formed by the businesses and operated through an Irish-incorporated and -domiciled holding company.
In addition to a regular listing on the London Stock Exchange, it will look to list in New York.
stockholders of WestRock will get one Smurfit WestRock share, equal to $43.51 per share, plus $5 cash, and Smurfit Kappa stockholders will receive one new share.
About 50.4% of the new business will be owned by Smurfit Kappa investors.
The purchase is anticipated to be “high single digit accretive” to Smurfit Kappa’s current profits per share and over 20% at the end of the first full year, according to the FTSE 100 company.
Source (CNBC)
