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WestRock Company (NYSE:WRK ) Smurfit Kappa and WestRock Merger Announcement September 12, 2023 8:00 AM ET Company Participants Tony Smurfit - CEO, Smurfit Kappa Group Plc David Sewell - CEO Conference Call Participants George Staphos - Bank of America Merrill Lynch Justin Jordan - Davy Lars Kjellberg - Credit Suisse Charlie Muir-Sands - BNP Paribas Gabe Hajde - Wells Fargo Cole Hathorn - Jefferies Mark Weintraub - Seaport Research Partners David O'Brien - Goodbody Gaurav Jain - Barclays Tony Smurfit Thank you very much operator, and good morning or good afternoon depending on your location. And thank you for joining this call at short notice.

WestRock (WRK) and Smurfit Kappa have formally signed a merger agreement to create a new company, Smurfit WestRock.

Atlanta, Georgia-based WestRock Company (NYSE: WRK ) stock is climbing over 5% and trending on social media. The rally comes after WestRock's European competitor, Smurfit Kappa (OTCMKTS: SMFKY ), announced that it is going forward with its $11.2 billion merger with WestRock.

Packaging company WestRock's (WRK) shares soared by almost 7% in pre-market trading on Tuesday after a merger announcement with Dublin-based Smurfit Kappa to create the world's largest listed paper and packaging company by revenue.

WestRock Co.'s stock WRK, -1.48% was up 8.2% as a leading gainer in premarket trading Tuesday as the packaging company confirmed plans to merge with Smurfit Kappa Group SK3, -8.48% to form Smurfit WestRock. WestRock shareholders will receive $43.51 a share for each share through a combination of $5 per share in cash and one new share of Smurfit WestRock.

WestRock reported better-than-expected Q3 results, beating consensus estimates on EPS and EBITDA. WestRock's cost saving initiatives are exceeding the company's internal expectations. No valuation details on the potential merger combination.

Shares in Smurfit Kappa Group plc (LSE:SKG) fell 9% after its board and that of WestRock Co (NYSE:WRK) confirmed the pair had agreed to merge and create a US$34 billion revenue packaging giant.  Analysts at Barclays said they had received "mixed feedback" after last week's news that merger discussions were at an advanced stage, with clients of the bank feeling angst about "a) deal premium, b) US expansion, c) size of deal, and d) synergies, etc".

Tony Smurfit, CEO of packaging giant Smurfit Kappa, discusses the company's announcement that they will merge with U.S. peer Westrock.

The companies will form Smurfit WestRock — set to be one of the largest packaging companies in the world.

WestRock (WRK) and Smurfit Kappa are currently exploring merger options, which are expected to create a paper packaging giant.