[Nick Hargrave]

https://otp.tools.investis.com/clients/uk/smurfit_kappa_group_plc/rns/regulatory-story.aspx?cid=2627&newsid=1713758

A significant potential transaction merging with Smurfit. On the face of it there’s strong logic to the combination but we await details on the terms and likely competition hurdles to assess the value impact

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[Nick Hargrave]

More details now as the merger is confirmed with the press release and presentation links below. Headline value per WRK share of $43.51 including shares in newco and $5 cash per share

https://www.londonstockexchange.com/news-article/SKG/statement-re-smurfit-kappa-and-westrock-announce-transaction-to-create-a-global-leader-in-sustainable-packaging/16120297

https://s21.q4cdn.com/975972157/files/doc_presentations/2023/09/Smurfit-WestRock-Creating-a-Global-Leader-in-Sustainable-Packaging-vF.pdf

Strong operational rationale and $400m annual synergy target announced though there is obviously some competition clearance risk to the merger which should be relatively low given the limited geographic overlap. Lots still to digest as we await to see if the market overcomes its initial lukewarm response

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