Smurfit Kappa looks to ditch London as it plots merger with US rival West Rock
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Irish packaging behemoth Smurfit Kappa has verified that it is engaged in progressive negotiations regarding a potential merger with American competitor West Rock. This combination has the potential to form a dominant force in the paper and packaging industry.
The merged corporation would be called Smurfit Westrock and would be legally registered and based in Ireland, with its primary administrative center located in Dublin. Additionally, its shares would be publicly traded on the New York Stock Exchange.
According to a statement released by Smurfit Kappa, the proposed union, pending regulatory endorsement, will contribute to the formation of a worldwide frontrunner in eco-friendly packaging.
Both companies have generated a total income of £34 billion (£27 billion) within the past year, demonstrating the enduring demand for packaging products despite challenging economic conditions.
A collaboration between these companies would result in Smurfit Kappa joining the recent trend of companies abandoning their London listing this year. Many firms have either considered having two listings or chosen not to go public in the City.
Construction materials provider CRH is scheduled to replace its listing in London with one in New York this month after receiving approval from shareholders earlier in the year. Additionally, gambling corporation Flutter is preparing for a double listing.
Plus500, a fintech trading company, and YouGov, a polling platform, have also issued comparable cautionary statements.
The London Stock Exchange has experienced a significant decline in new initial public offerings amid a challenging situation for the IPO market.
According to information provided by EY, only a total of 18 companies managed to raise £650 million during the first half of the year. This is due to the fact that many companies have decided to postpone their initial public offerings (IPOs) due to the instability and uncertainty in the financial markets.