Smurfit Kappa clears final hurdles for merger with US firm WestRock

Deal will create packaging giant that provides everything from corrugated storage boxes to beer carriers and e-commerce shipping materials

In September last year, the two companies announced they were to combine their operations under the new company called Smurfit WestRock. 

Packaging giant Smurfit Kappa has obtained all the regulatory clearances needed to allow its merger with US packaging firm WestRock to go ahead on July 5.

The two companies announced in September last year they were to combine their operations under the new company called Smurfit WestRock. At the time, the deal was reported to be worth $11.2bn (€10.47bn).

In a statement, Smurfit Kappa said completion of the deal remained subject to the sanction by the Irish High Court but should all go as planned it will be approved on July 2.

The company also said July 2 would be the last day of trading of Smurfit Kappa shares on Euronext Dublin. It will be officially delisted from the exchange on July 8.

On July 5, the new Smurfit WestRock shares will be issued to Smurfit Kappa shareholders and WestRock shareholders.

The new entity will be listed on the London Stock Exchange and the New York Stock Exchange.

The deal was unanimously recommended by the boards of both companies. The deal will create a packaging giant that provides everything from corrugated storage boxes to beer carriers and e-commerce shipping materials.

This merger comes following a difficult year for the company. In 2023, Smurfit Kappa saw its earnings fall 12% to €2.35bn amid a "difficult" demand environment. 

However, the company noted increasing demand for sustainable packaging solutions, adding while full-year volumes for the group were down 3.5%, it saw a "progressive improvement" in demand during the year, with a return to growth in the fourth quarter.

The group's operating profit dropped to €1.4bn, down 16% year-on-year.