Packaging Dive’s Post

Merger of Smurfit Kappa and WestRock Company to Reshape the Pulp and Paper Industry The recent announcement that packaging giants Smurfit Kappa and WestRock will merge to form Smurfit WestRock marks a significant development for the global paper and pulp sector. The combined company will be a true industry leader with vastly expanded capabilities across corrugated cardboard, recycled & virgin containerboard and various paperboard production. By joining Smurfit Kappa's strengths in Europe with WestRock's premium portfolio and large North American footprint, Smurfit WestRock will have unmatched scale, controlling over 10% of global corrugated capacity. With combined annual sales of $34 billion, their purchasing power will give the merged entity significant pricing leverage. This industry consolidation could accelerate further mergers among mid-sized players looking to gain scale. Integrated paper mill operators could benefit however from partnering with the merged company. Sustainability will also be a defining focus, with Smurfit Kappa and WestRock's recycling and FSC certification expertise important for customers increasingly demanding circular solutions. This transaction positions the industry for the next generation of fiber-based packaging. Overall, the new Smurfit WestRock consolidates their leadership position to shape the future evolution of the global pulp and paper supply chain. #pulpandpaper #packaging #sustainability #mergersandacquisitions #corrugatedpackaging #paperindustry

A big step towards market consolidation

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Latin America's packaging industry is on the cusp of significant transformation. The merger between Smurfit Kappa and WestRock Company is poised to establish them as the foremost packaging producer in the region. By leveraging scale advantages throughout the production chain, from pulp manufacturing to downstream segments, they are set to achieve unparalleled dominance. How will this impact the Latin American markets? Head to the article and uncover the insights today: https://fmrkts.com/48SWQWG Please note: Figures reflect our preliminary numbers for the 2023.i1 forecast and are subject to change. #FastmarketsForestProducts #Packaging #Containerboard #LatinAmerica

Well, that will teach me to go away on holiday for a week! To be honest, after the start to 2024 we have had, a week away with my wife and kids was what was needed. But to sit on the sidelines and read the news of Mondi Group starting talks with DS Smith about a possible all-share acquisition is massive news that I am only just reporting on! A deal that would see Mondi move back into the UK paper and corrugated market, having exited some years ago; a significant move into corrugated in the USA; bolstering its position in France and Spain. This really is a big move and maybe reminds us that the big will just get bigger in this post-mature corrugated industry we all love so much. With Smurfit Westrock on the horizon, and possibly a deal that will see the DS Smith name move to Mondi, the industry is in for continuing change, even at the smaller plant/company level where we see acquisitions happening left, right and centre! Buckle up, 2024 is gonna be a fun ride! https://lnkd.in/e68h8mDM

😯It's happening! Smurfit Kappa's acquisition of WestRock for $11 billion is set to create the world's largest paper and packaging company. With a combined revenue of $34 billion, this strategic move aims to navigate weak economies on both sides of the Atlantic. Smurfit Kappa's shares dropped 10%, while WestRock's climbed 7.2% in pre-market trade, as the premium paid by the Irish company exceeded investor expectations. What are your thoughts on this game-changing deal? #MergersAndAcquisitions #PackagingIndustry

Last night International Paper announced a 415p per share proposal for DS Smith, higher than the 373p already on the table from Mondi Group. The premium to Mondi's unaffected share price is now at a sizable 48%, which is higher than the 42% Smurfit Kappa's paying for WestRock Company, in the other major deal in the packaging sector. The question now will be whether Mondi will come back with a higher offer. Under Mondi's all share proposal, DS Smith shareholders would already own 46% of the combined group. To win a bidding war, it might have to give away control, which Mondi some shareholders could not be happy with, or add cash a component. Regardless, given the Smurfit Kappa/Westrock tie-up neither Mondi or International Paper will want to be left behind in this wave of consolidation. #manda #mergersandacquisitions #londonstockexchange

Basham, Ringe y Correa, S.C. has advised Smurfit Kappa on the clearance by the Federal Economic Competition Commission (COFECE) of the combination of the global businesses of two of the world’s leading sustainable packaging players, Smurfit Kappa and WestRock Company. Basham’s antitrust team was led by partner Amilcar Peredo (pictured), with the support of senior associate León Jiménez and intern Ana Regina Granda Bezares. Read the full article >> https://lnkd.in/dzwfpsW9 #TheLatinAmericanLawyer #competition #antitrust