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HomeLatest NewsSmurfit Kappa plummets more than 8% after confirming its merger with WestRock

Smurfit Kappa plummets more than 8% after confirming its merger with WestRock

Date: April 17, 2024 Time: 08:08:21

Investors punish Smurfit Kappa. The Irish packaging firm plummets more than 8% on the stock market, to 2.79 euros per share, after confirming the merger agreement with the American WestRock. Smurfit WestRock, the name resulting from the union of both companies, will give rise to a group with a joint annual turnover of about 34,000 million dollars (31,718 million euros).

WestRock will receive $43.51 (€40.59) per share in the form of cash and securities of the new company. In this way, Smurfit Kappa shareholders will control 50.4% of the share capital of the combined entity. In addition, Tony Smurfit will be its new CEO.

According to the press release published last week by Smurfit Kappa to publicize what were then negotiations, the company’s headquarters will be located in Dublin (Ireland), while the offices in charge of operations in North America and the South will be located in Atlanta (United States).

On the other hand, the price of the new firm’s shares will be traded on the New York Stock Exchange and in the ordinary index of the London Stock Exchange, although Smurfit Kappa will leave the premium index of the latter. Likewise, the Irish company will stop trading on Euronext Dublin. The management of both companies has assured that the merger will lead to the creation of a “world leader in sustainable packaging” that would have approximately 100,000 employees and a presence in 42 countries.

Since it emerged that both companies were in negotiations, the Irish firm has lost almost a tenth of its capitalization, which translates into more than 900 million less valuation, down to 8.4 billion. On the contrary, WestRock points to a rebound of more than 7% in the pre-market, up to 36.55 euros per share.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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