While the package had been on view for some time, its contents somewhat of an open secret, the Smurfit Group this week at last cut the ribbons on the $6 billion merger between its US associate JS Corp and the larger Stone Container Corporation of the US.

The new entity, Smurfit-Stone Container Corporation (SSCC), will bring 20 per cent of the global packaging market under the control of Smurfit, as well as giving the Irish group effective management control, Smurfit executives occupying three of the four primary management positions. The merger, which gives the new grouping around 11 per cent of global sales, will create numerous benefits., including around $350 million in cost savings. Smurfit will be the largest shareholder in SSCC with 34 per cent of the equity at a cost of around $550 million.

Analysts hailed the get-together which , with plant closures, is expected to reduce the oversupply of US containerboard capacity and help create a more ordered market.