What impact will the acquisition of Greif's Containerboard business have on Packaging Corporation of America's stock price and market position?

The acquisition of Greif's Containerboard business is likely to have a positive impact on Packaging Corporation of America's (PCA) stock price and market position for several reasons:

1. **Increase in Production Capacity**: The acquisition includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants. This significant increase in production capacity will enable PCA to meet growing demand for its products and expand its market share.
2. **Immediate Accretion to Earnings**: The transaction is expected to be immediately accretive to earnings. This means that PCA's earnings per share (EPS) is likely to increase immediately after the acquisition, which can positively impact the stock price.
3. **Synergies and Cost Savings**: PCA expects synergies of about $60 million within two years after closing. These synergies could result from operational efficiencies, reduced costs, and improved productivity, which can enhance the company's profitability and potentially lead to higher stock prices.
4. **Enhanced Market Position**: The acquisition will strengthen PCA's market position by adding new production capabilities and expanding its geographic reach. This enhanced market position can attract more customers and improve the company's bargaining power in the industry.
5. **Shareholder Value**: The acquisition is expected to unlock significant value for PCA's shareholders, as evidenced by the increase in PCA's stock price following the announcement of the deal. This positive sentiment can persist as the market digests the acquisition and its potential benefits.
6. **Greif's Strategic Focus**: Greif's decision to sell its containerboard business aligns with its strategic focus on high-growth end markets. This divestiture allows Greif to concentrate on its polymer-based products and other growth areas, which can be beneficial for its shareholders and may lead to improved financial performance over time.
7. **Financial Flexibility**: The proceeds from the sale will enable Greif to repay debt and enhance its financial flexibility, which can be positive for its stock price and credit rating.

In conclusion, the acquisition is likely to enhance PCA's financial performance, expand its market position, and create value for its shareholders, which can lead to a positive impact on its stock price. However, market conditions and regulatory approvals can influence the final outcome.