The newly merged packaging giant Smurfit WestRock began trading on the New York Stock Exchange on Monday.
The shares were trading at $46.12 (€42.59), up 96 US cents or 2.13 per cent on the session, at 2pm in New York. Smurfit Kappa’s shares had ended their final trading session in Dublin last week at €41.44, down slightly on the day but still 36 per cent up over the previous 12 months.
Smurfit Kappa’s $24 billion (€22.4 billion) merger with US-based WestRock was given the green light in recent weeks, paving the way for the creation of the world’s biggest paper packaging company.
The Irish cardboard box-making group received clearance from the High Court in Dublin last week for what was essentially a takeover of WestRock through a so-called scheme of arrangement. Smurfit Kappa shareholders own 50.4 per cent of the enlarged group, which is now known as Smurfit WestRock.
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The group has moved its primary stock market listing from London to the New York Stock Exchange, although it has retained a standard listing on the London Stock Exchange.
It remains headquartered in Dublin and is led by Tony Smurfit and Ken Bowles, who was previously chief financial officer of Smurfit Kappa.
[ Smurfit Kappa dip on last day on Iseq as High Court clears mergerOpens in new window ]
The Irish delisting ended Smurfit Kappa’s association with the Dublin market, which stretched back to 1964, albeit with a gap in the 2000s when the company was owned by private equity investors.
“Combining Smurfit Kappa and WestRock creates a world-leading sustainable packaging player, bringing together a tremendous depth of experience and expertise from both companies,” said Mr Smurfit on Monday.
“We believe that this combination has created the go-to leader and partner of choice in sustainable packaging. I’m proud to be chosen to lead this great team of people.”
Mr Bowles added: “The shareholders of both Smurfit Kappa and WestRock have overwhelmingly supported our combination. Smurfit WestRock has a unique geographic footprint and through our industry-leading applications, an unparalleled ability to provide value for our customers.”
The outlook for the packaging industry has improved significantly from when the merger agreement was announced last September. At the time box-makers were dealing with a slump in demand that followed a global spike in spending on physical goods, from TVs to patio furniture, during pandemic lockdowns.
Mr Bowles said the demand rebound and resumption of box price increases since meant the companies had been correct in predicting they were coming together near the low point of the business cycle.
“The conditions have fundamentally changed for the positive since we announced the deal,” he said, adding that the focus for the next six months would be on integrating the two businesses, and that management was not considering asset sales.
The departure of Smurfit Kappa marks the third exit of an Iseq heavyweight in the past 10 months following the lead of CRH and Paddy Power parent Flutter Entertainment.
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