WestRock jumps as Smurfit Kappa merger creates world's largest packaging firm

Build-A-Bear Workshop

12/09/2023 09:38

** Shares of WestRock  WRK.N  jump 7.2% to $36.51 premarket
    ** Co to combine with Ireland-based Smurfit Kappa  SKG.I  to
create world's largest paper and packaging producers worth
nearly $20 bln
    ** WestRock stockholders will get one new Smurfit WestRock
share and $5 in cash for each share they hold, which works out
to $43.51/shr
    ** The deal value offers ~36% premium to WRK's closing price
on Sept 6, before the report of merger 
    ** Analysts at JP Morgan and Jefferies believe the premium
being paid to WestRock was higher than most Smurfit investors
were hoping for
    ** Smurfit Kappa shares fall 10.9% in Dublin
    ** WRK shares down 3.1% so far this year compared to 16.9%
rise in the S&P 500  .SPX 

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))