A possible deal comes five years after another US firm, International Paper, sought to take over Smurfit Kappa. That offer, which was worth about €37.54 per share, ultimately fell apart after Smurfit rejected the approach, citing advantages of remaining an independent company. Smurfit’s shares closed on Wednesday at €37.51 in Dublin giving it a market capitalisation of €9.76 billion.
Long one of Ireland’s best known companies, Smurfit Kappa surged during the pandemic as consumer spending rocketed. That boosted demand from retailers for Smurfit’s cardboard boxes, as online shopping jumped. Its shares more than doubled from just under €21 in late March 2020, to more than €50 last summer. Yet the stock has struggled this year as people reined in their spending.
For its part, WestRock is one of the biggest packaging companies in the US, with about 58,000 staff globally, according to its website. Listed in New York, it operates around 300 manufacturing facilities around the world. It also has five offices on the island of Ireland, in Belfast, Dublin, Limerick and Westport. Like Smurfit, WestRock shares have slumped this year, and are down about 16 per cent since January 1. giving it an overall value of $8.2 billion .