Dublin
Smurfit looks west: Irish FTSE-100 cardboard packaging giant Smurfit Kappa is “[gravitating] towards a market that has much more liquidity and higher ratings”, according to its CEO, Tony Smurfit (pictured). In other words, it is switching its main listing from London to New York in what amounts to yet another blow to the British market, says Jude Webber in the Financial Times. The switch is part of its merger with US rival WestRock, which is already listed in New York, and the €20bn combined group, to be called Smurfit WestRock, will retain a standard listing in London. Smurfit’s shareholders will own 50.4% of the equity and WestRock’s investors the remaining 49.6%. The deal values the latter’s shares at a 28% premium as of Tuesday. Smurfit’s shareholders had expected the premium to be lower.
There are good reasons for the merger, says Lisa Jucca on Breakingviews. Pandemic-era online shopping had been a boon for packaging companies, but now consumers prefer to “splash out on dinners and travel”, while inflation continues to erode their spending power.
