Sept 12 (Reuters) – Smurfit Kappa (SKG.L) (SK3.IR) (SMFKY) and WestRock (WRK) have agreed to combine, the companies said on Tuesday, to create one of the world’s largest paper and packaging producers worth nearly $20 billion.
The companies’ combined adjusted revenue was about $34 billion for the year ended June 30, which would make the new company, called Smurfit WestRock, the largest listed global packaging partner by revenue, the statement said.
WestRock stockholders will get one new Smurfit WestRock share and $5 in cash for each share they hold, which works out to $43.51 per share, the statement said.
Shares in Smurfit Kappa fell over 10% in London on Tuesday, after the merger announcement. WestRock’s stock was about 8% higher in extended trading.
Ireland-based Smurfit had said last week that it was in talks with U.S.-based WestRock. Smurfit WestRock will be based in Ireland.
Smurfit, which operates in 22 European countries and 13 in South, Central and North America, is Europe’s largest paper and packaging producer. WestRock is the second-largest packaging company in the U.S.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio D’Souza)