In a high-stakes game of corporate chess, Irish paper behemoth, Smurfit Kappa, takes a bold move to acquire its American counterpart, WestRock, to shape a global sustainable packaging empire.
The Billion-Dollar Deal
In an audacious twist in the sustainable packaging landscape, Smurfit Kappa announced on Tuesday its intent to acquire U.S-based WestRock for a whopping $11.2 billion. This acquisition is not just a financial move, but a strategic endeavor to seize the global reins of sustainable packaging.
A lawsuit of this magnitude demands legal heavyweights. Joining the fray for Smurfit Kappa are three titan law firms – Matheson LLP, Wachtell Lipton Rosen & Katz, and Freshfields Bruckhaus Deringer LLP. Not to be outdone, WestRock has called upon the expertise of Clifford Chance LLP, Paul Weiss Rifkind Wharton & Garrison LLP, and Cravath Swaine & Moore LLP.
For every WestRock share, shareholders will acquire one share in the burgeoning Smurfit WestRock empire and a crisp $5 note. This translates to roughly $43.51 for each WestRock share, according to Smurfit Kappa’s calculations, which is anchored to WestRock’s share price before Tuesday’s trading.
Stock Market’s Roller Coaster
In a thrilling response, WestRock Co. shares, playing on the NASDAQ stage and part of the esteemed S&P 500, surged 2.84% pre-trading on Tuesday, opening at $36.90. The previous close? A cool $34.06. In a curious plot twist, though, Smurfit Kappa’s shares, stars of London’s prestigious FTSE 100 index, plunged by 10.30% on Tuesday morning.
