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Following discussions last week around a potential merger, Smurfit Kappa and WestRock Company have confirmed an agreement to combine their businesses into a $20 billion company To get access to unmissable exclusive content and enhanced personalisation options, become a Packaging Europe subscriber (for free): https://lnkd.in/e3xexKss   Follow our hashtag to stay up to date with the latest packaging news: #PackagingEurope

More on the Smurfit Kappa WestRock merger. "As of 30th June 2023, the combined adjusted revenue and adjusted EBITDA over the last twelve months are set to reach respective approximates of $34 billion and $5.5 billion. On a pre-synergy basis, it is anticipated that Smurfit WestRock will achieve accretion in the upper single digits when compared to Smurfit Kappa’s earnings per share.  "Including run-rate synergies one full year after completion, accretion is expected to exceed 20%. In the same time frame, the companies are working towards annual pre-tax run-rate synergies of over $400 million. Their deliveries are thought to require around $235 million in one-off cash costs." #pulpandpaper

In September, two of the world’s largest #paper #packaging producers—Ireland’s Smurfit Kappa and its U.S. rival WestRock Company—announced an $11 billion deal to create #sustainable packaging powerhouse Smurfit Westrock. The merger, expected to close in the second quarter of 2024, will have a deep impact on the corrugated packaging market, which is coping with weaker demand and lower prices globally. This mega deal gives the combined company a greater presence in Europe and deeper sector experience in North America, which might lead to increased competition and drive more M&A activity in Europe and the Americas. Still, our #RaboResearch packaging and logistics analysts, Xinnan Li and Natasha Valeeva, expect little immediate impact on #containerboard prices. For more in-depth analysis, read their report: https://bit.ly/48buM0a #mergers

In just a few quarters, the world has seen a complete reshuffling of packaging producers. Yesterday, on April 16th, International Paper announced an agreement to acquire DS Smith, a move that mirrors the merger between Smurfit Kappa and WestRock. The integration of approximately 500-600k tons of containerboard from DS Smith into the International Paper mill system will increase the combined integration rate to approximately 90%. With these mergers, Nine Dragons now faces two major competitors in the Americas and Europe. This consolidation process brings 16% of the world’s packaging capacity under the control of three companies. #pulp #pulpandpaper #pulpandpaperindustry #packaging #packagingindustry #merge #mergeandacquisition #strategy

An agreement reached! Over £5.1 billion! 🔥🔥 Packaging giants Mondi Group and DS Smith have advanced towards an agreement in principle for a potential all-share offer by Mondi for DS Smith. Mondi intends to acquire the entirety of DS Smith's issued and to be issued share capital, with Mondi shareholders holding 54% and DS Smith shareholders 46%. The proposed price per DS Smith share, £3.73, represents a 33% premium over DS Smith's closing share price on 7th February 2024. This move is expected to create a pan-European leader in paper-based packaging, leveraging complementary geographic footprints and synergies, with combined revenues exceeding €17 billion. Discussions will continue until 4th April 2024, beyond which DS Smith will decide on the firm take-over bid. #packaging #packaginginnovation #sustainability #dssmith #mondi #merger

The largest packaging company on Earth has been formed. The European Commission has approved the merger of Smurfit Kappa Group and WestRock. The Commission concluded that the transaction would not raise competition concerns, given the companies’ limited combined market position resulting from the proposed transaction. Even if International Paper successfully overcomes Mondi and acquires DS Smith, it will still maintain its leadership in terms of size. What does this mean for your business? #pulp #pulpandpaper #pulpandpaperindustry #packaging #packagingindustry #merge #mergeandacquisition #strategy

📦HUGE PACKAGING NEWS📦 Smurfit Kappa and WestRock Company are in serious discussions regarding a potential merger. In terms of geography this move would make sense as Westrock are one of North America’s preeminent packaging companies whilst Smurfit have a much larger presence in Europe. Combined they would be the largest packaging company in the world. A potential merger would continue to consolidate the market at the very top. Recent years have seen smaller, one-site companies be acquired by the larger organisations. I would be very interested to hear any thoughts that you may have about this news? Certainly worth watching! #PackagingNews #Mergers

𝐀 𝐧𝐞𝐰 𝐩𝐚𝐜𝐤𝐚𝐠𝐢𝐧𝐠 𝐠𝐢𝐚𝐧𝐭?   I’ve seen the recent news that an agreement in principle has been reached for Mondi Group to acquire DS Smith within the paper and packaging space which will really form a European leader in sustainable packaging solutions.   The merger would create a company boasting a value of over £10 Billion, solidifying its position as a packaging leader.    This comes after the recent mega-merger between paper and packaging giants WestRock Company and Smurfit Kappa. Regulatory approval is still needed, but if the merger goes through, it could be a significant development in the sustainable packaging space.   𝑾𝒉𝒂𝒕 𝒂𝒓𝒆 𝒚𝒐𝒖𝒓 𝒕𝒉𝒐𝒖𝒈𝒉𝒕𝒔 𝒐𝒏 𝒕𝒉𝒊𝒔 𝒑𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝒎𝒆𝒓𝒈𝒆𝒓? 𝑰𝒔 𝒕𝒉𝒆𝒓𝒆 𝒂𝒏𝒚 𝒐𝒕𝒉𝒆𝒓 𝑴&𝑨 𝒂𝒄𝒕𝒊𝒗𝒊𝒕𝒚 𝒐𝒏 𝒕𝒉𝒆 𝒉𝒐𝒓𝒊𝒛𝒐𝒏?    #packaging #mondi #dssmith #merger

In light of the impressive Smurfit Kappa and WestRock Company merger to become #SmurfitWestRock, the global packaging industry is abuzz with possibilities. It naturally leads us to ponder: Could we be on the brink of another merger powerhouse of orange and green? With the market dynamics shifting rapidly, it's thrilling to speculate about such potential collaborations. 🌍📦 #FEFCO #CorrugatedPackaging #NextBigThing #MergersAndAcquisitions

At first glance, the merger between Smurfit Kappa and WestRock was surprising. However, understanding the geographical footprint of each company, the move seems quite strategic. The Pulp and Paper Industry is vast, with hundreds of companies operating in various segments. This same strategic logic could indeed be applied to these other segments. For instance, there are several Printing and Writing Companies in Europe that produce over a million tons, yet their presence in other regions is minimal. Conversely, some companies have a strong foothold in the southern hemisphere but lack a significant presence in Europe. The Tissue Business presents an even more diverse landscape. If we consider only those companies producing 500k tons or more, excluding the Asian Pacific players, the potential for synergies is astounding. The industry’s fragmentation suggests numerous opportunities for strategic alliances and mergers. #pulpandpaper #pulpandpaperindustry #tissue #tissuepaper #mergersandacquisitions #mergers