Smurfit Kappa shares experienced a dip on their final day of trading on the Irish stock market before their anticipated merger with US-based WestRock. The merger, valued at $24 billion, is set to create the world’s largest paper packaging entity.
The High Court in Dublin granted clearance for the merger, which will see Smurfit Kappa essentially taking over WestRock through a scheme of arrangement. Despite the drop in share price to €41.44, the company’s market value remained at €10.8 billion, reflecting a 36% increase over the past year.
Following the merger, Smurfit Kappa shareholders will hold a 50.4% stake in the combined entity, to be named Smurfit WestRock. The group’s primary stock market listing will shift from London to the New York Stock Exchange, with Dublin serving as its headquarters under the leadership of current CEO Tony Smurfit and CFO Ken Bowles.
With this move, Smurfit Kappa concludes its long-standing association with the Dublin market dating back to 1964, except for a period in the 2000s when it was under private equity ownership. This marks the third major departure from the Iseq in less than a year, following CRH and Flutter Entertainment’s exits.
The packaging industry’s outlook has significantly improved since the merger announcement in September, as box-makers have navigated through a challenging demand environment. The transition to Smurfit WestRock signals a new chapter for the company as it consolidates its position in the global packaging sector.
