Smurfit Kappa to merge with WestRock; clearances secured
After the shareholders of WestRock voted to approve the company’s proposed merger with Smurfit Kappa, the two majors are a step closer to combining two of the biggest players in the industry.
02 Jul 2024 | By Disha Chakraborty
In a move that will establish Smurfit Kappa and WestRock as the foremost packaging producer, Smurfit Kappa has revealed that all outstanding regulatory clearances which were a condition to closing the previously announced “combination” with WestRock have now been obtained. The deal about the merger remains on track to close on 5 July.
As WhatPackaging? magazine reported in October 2023, Smurfit Kappa and WestRock have confirmed an agreement to combine their businesses. This is to create Smurfit WestRock, a global leader in sustainable packaging.
In a statement, the Irish business said the completion of the combination remains subject to the sanction of the scheme by the Irish High Court.
Together, Smurfit Kappa and WestRock generated a combined twelve months’ adjusted annual revenue of approximately USD 34bn as of 30 June 2023.
Pursuant to the terms of the transaction agreement entered on 12 September, 2023, Smurfit WestRock will acquire Smurfit Kappa by means of a scheme of arrangement under the Companies Act 2014 of Ireland (as amended).
Sun Merger Sub, LLC, a wholly owned subsidiary of Smurfit WestRock, will merge with and into WestRock, and together with the Smurfit Kappa Exchange, with WestRock surviving the merger and becoming a wholly owned subsidiary of Smurfit WestRock.
The European Commission, under the EU Merger Regulation, had already approved the merger in April.