Smurfit Kappa Reaches Agreement to Purchase WestRock, Creating World’s Largest Paper and Packaging Company
Reuters reported on Tuesday (9-12-23) that Ireland’s Smurfit Kappa has reached an agreement to purchase its US rival WestRock for an agreed $11 billion to create the world’s largest paper and packaging company and to try better to navigate weak economies on both sides of the Atlantic.
The deal will combine Europe’s biggest paper and packaging producers with the second largest player in the United States and forge a company worth nearly $20 billion. JP Morgan estimates the combined entity would have a market share of approximately 20% in the corrugated packaging market in Europe and North America.
According to Reuters, packaging firms benefited from a boom in demand for goods and e-commerce during COVID-19 lockdowns but have struggled to match those volumes since consumers resumed spending on services and producers started cutting back packaged stocks.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.