Amcor Acquires Consumer Packaging Competitor Berry Global in $8.4 Billion Stock Transaction

Amcor (AMCR) reached an agreement to acquire rival consumer packaging company Berry Global Group (BERY) in an $8.4 billion all-stock transaction.

The merger values ​​Berry’s shares at $73.59 per share; That’s a nearly 10% premium over Monday’s closing price of $67.05. Berry’s shares rose 4% to $70 before the opening bell on Tuesday, while U.S.-listed Amcor shares were down less than 1%.

According to the agreement, Berry shareholders will receive 7.25 Amcor shares for every share of Berry they hold. Amcor shareholders will retain two-thirds of the combined company, while Berry shareholders will retain one-third. amcor CEO Peter Konieczny will continue in the same position in the merged company.

The companies have total annual revenue of $24 billion, and Amcor says the deal will create $650 million in cost savings and other areas. financial synergies for the combined company by the end of the third year. They also expect annual research and development investments in sustainable packaging solutions and other initiatives to be $180 million.