Smurfit Kappa Group has agreed to acquire WestRock in a deal worth USD 11.2 billion, creating the world's largest packaging company by revenue. WestRock shareholders will receive US$43.51 per share in cash and stock and Smurfit Kappa's Dublin-based investors will own approximately 50.4% of the combined entity, which will have a combined market value of approximately US$20 billion.

Based in Atlanta, WestRock specializes in manufacturing packaging for a wide range of products, including pharmaceuticals, food and housewares, and reported 2022 revenues of $21.3 billion. The company was formed in 2015 through the merger of MeadWestvaco and RockTenn.

The Dublin-based Smurfit Kappa Group traces its origins back to 1934 as a carton and packaging manufacturer. The merger of Jefferson Smurfit and Dutch competitor Kappa Packaging in 2005 led to the creation of the company now known as Smurfit Kappa. The company produces packaging for consumer goods, e-commerce and industrial products companies and has regional offices in Amsterdam and Miami.

On the day of the announcement, Smurfit Kappa's shares fell by as much as 13% in early trading, mainly due to the 28% premium the acquisition represented over WestRock's closing share price before the announcement. WestRock shares, on the other hand, rose as much as 7% during trading in the U.S. Among other things, Smurfit will also move its main listing from London to New York.

The merger between the groups comes at a time when revenues from the pandemic e-commerce boom are dwindling, causing the share prices of Smurfit, WestRock and rival International Paper to fall from their 2021 highs. The companies project annual pre-tax synergies in excess of $400 million by the end of the first year after the deal is completed.