Smurfit wraps up packaging firm acquisition

Jefferson Smurfit Group and Kappa Packaging have announced a proposal to merge.

The merger is subject to a number of conditions including EU competition approval.

A merged entity would result in a workforce of approximately 43,000 people. In 2004, revenue generated from the combined operations, spanning 23 and nine Latin American countries was €7.6bn.

JSG and Kappa Packaging propose to merge through the issue of shares by JSG and the payment of about €300m in cash and a €75m subordinated promissory note, subject to closing adjustments, to Kappa’s shareholders.