WestRock is currently engaged in merger talks with Smurfit Kappa, an Irish paper and packaging company. If successful, this merger could result in the creation of a new entity worth approximately $20 billion.
Dublin-based Smurfit Kappa, listed on both the Irish stock exchange and the UK’s benchmark FTSE 100 index, confirmed these discussions following a report by The Wall Street Journal. However, it is important to note that Smurfit has not provided any further details regarding this potential merger, such as the distribution of stock.
This news has had an immediate impact on the stock market, with WestRock shares experiencing a 7.6% jump in premarket trading. Meanwhile, Smurfit shares have slipped 1.5% on the London Stock Exchange.
Despite these talks, it is essential to remember that nothing is set in stone, and the transaction may not ultimately materialize. If the merger does go through, the new company will establish its global headquarters in Dublin, while its North and South American operations will be run from WestRock’s current location in Atlanta.
It is worth mentioning that International Paper had previously attempted to acquire Smurfit Kappa in 2018 but was unsuccessful. Since then, Smurfit has made several acquisitions of its own. Conversely, WestRock’s most significant acquisition thus far was the $5 billion purchase of KapStone Paper and Packaging in 2018.