shareholders have endured a tough time lately, with the stock falling 10 per cent after it revealed the terms of its proposed merger with US packaging rival WestRock.responded by predicting shares “will come back strongly” when investors see the “potential benefit”. Certainly, there are potential positives.
If the deal goes ahead, says Smurfit, most of the company’s business will be in the Americas, justifying a US listing that should drive a higher valuation multiple. The timing looks good. Like other paper producers, WestRock shares had fallen back to pandemic lows, roughly halving since 2021′s peak. Smurfit is targeting synergies of over $400 million annually. That’s ambitious; if achieved, it would go a long way to justifying the deal.However, market concern is understandable.