A deal would create a packaging behemoth with market leading positions in the US and Europe. The two firms currently employ about 110,000 people between them as independent companies. It would also raise questions about the future of Smurfit Kappa’s listing on the Irish Stock Exchange, which is already set to lose one of its biggest companies – construction materials giant CRH – this year.
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 .
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: IrishTimes - 🏆 3. / 98 Read more »