Is a merger between two paper and packaging behemoths in the offing? Yes, confirms Smurfit Kappa. The group, listed on the London and Dublin Stock Exchanges, has officially announced that it is in discussions with the American company WestRock. Smurfit Kappa and WestRock, part of the UK's FTSEÂ 100 index and the US S&P 500 index respectively, are studying the possibility of acquiring a stake in the company "a potential grouping which would give birth to Smurfit WestRock.
With its 100,000 employees (around 50,000 from Smurfit Kappa and 50,000 from WestRock) and combined sales of $34 billion, Smurfit WestRock would position itself as a "a world leader in sustainable packaging" .
The new paper group would operate in 42 countries, with a significant presence in Europe and America, thanks to over 500 converting sites and 67 mills. Earnings before interest, taxes, depreciation and amortization (or EBITDA) of the two groups would total $5.5 billion.
Their combination would save over $400 million a year before tax from the end of the first year following the merger.
Smurfit WestRock would be based in Ireland, with global headquarters in Dublin and North and South American operations based in Atlanta, Georgia.
Smurfit WestRock would like to be included in the US stock market index.
