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Wednesday, July 24, 2024
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WestRock Stockholders Approve Smurfit Kappa Combination

The proposed merger between Smurfit Kappa Group plc (Smurfit Kappa) and WestRock Company (WestRock) has been finalized following approval from both companies’ shareholders. This development paves the way for creating a leading global player in the sustainable fiber-based paper and packaging industry.

The approval process culminated at special shareholder meetings on June 13, 2024. Based on preliminary vote counts, stockholders from both companies overwhelmingly endorsed the transaction agreement and related proposals. Smurfit Kappa shareholders exhibited particularly strong support, with nearly 99% voting in favor of the merger.

This outcome signifies the culmination of a strategic initiative designed to leverage the strengths of both companies. The combined entity, Smurfit WestRock, will benefit from a broader geographic footprint, a more comprehensive product portfolio, and enhanced operational efficiencies.

Smurfit Kappa is recognized for its leadership in the European and Latin American packaging markets. WestRock boasts a well-established presence in North America. The merger is expected to create a more geographically balanced organization with the potential to better serve customers on a global scale.

From a product perspective, the combined entity will offer a wider range of packaging solutions, catering to a more diverse clientele. Smurfit Kappa’s expertise in producing corrugated cardboard boxes will complement WestRock’s strength in containerboard and consumer packaging segments.

The merger is also anticipated to unlock significant operational synergies. By combining resources and streamlining processes, Smurfit WestRock is expected to achieve greater cost efficiencies and improve profitability.

The final structure of the deal dictates that Smurfit Kappa shareholders will own approximately 50.4% of the newly formed company, and WestRock shareholders will hold the remaining 49.6% stake. The headquarters of Smurfit WestRock will be located in Dublin, Ireland, and executives from Smurfit Kappa will fill leadership positions.

In conclusion, the successful completion of the Smurfit Kappa-WestRock merger signifies a significant development in the global packaging industry. The combined entity is poised to become a leader in the sector, offering a wider product range, enhanced geographic reach, and improved operational efficiency.

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