The Packaging Giants Merge: Amcor and Berry Clear Final Hurdle in EU Approval

The European Commission’s unconditional approval of Amcor’s $10.5 billion acquisition of Berry Global on April 25, 2025, marks a pivotal moment for the global packaging industry. This merger, once clouded by antitrust concerns, now moves toward its April 30 closing date, promising to create a combined entity with $13.6 billion in annual revenue and operations in over 200 locations. Here’s why investors should pay close attention.

The Regulatory Path to Closure

The journey to this approval began in 2021, when the European Commission initially approved Amcor’s acquisition of Berry’s rigid plastics business—but only after requiring divestitures in Germany, Italy, and the UK. By early 2024, those divestitures were finalized, with the Commission declaring compliance. Fast-forward to 2025, and the EC has now greenlit the full merger unconditionally, signaling confidence that the combined entity won’t harm competition in key markets.

Why This Merger Matters

Together, Amcor (NYSE: AMCR) and Berry (NYSE: BERY) will dominate sustainable packaging solutions, a sector growing at 6.5% annually as consumer goods companies prioritize ESG goals. The merger unites Amcor’s expertise in flexible packaging (think food and pharmaceuticals) with Berry’s rigid plastics business (used in household and industrial products). Combined, they’ll serve over 40 countries, employ 75,000+ workers, and leverage $13.6 billion in annual sales (Amcor’s FY2024 figure alone).

Key Catalysts for Investors

1. Closing Date Certainty: The April 30 deadline is now within sight, with the EC’s approval removing the final regulatory hurdle. While customary closing conditions (e.g., shareholder approvals) remain, the path is clear.
2. Earnings Call Synced with Merger: On April 30, Amcor will release its Q3 2025 financial results post-market, followed by a conference call at 5:30 p.m. EDT. Investors will scrutinize synergies and cost savings, which the companies estimate at $300 million annually.
3. Sustainable Packaging Demand: The sector’s growth is underpinned by regulatory trends like the EU’s Plastic Tax and corporate net-zero commitments. The merged entity’s R&D pipeline, including biodegradable materials, positions it to capitalize.

Risks to Watch

• Integration Challenges: Merging two global operations with 75,000 employees carries execution risks. Delays or cost overruns could pressure shares.
• Litigation: Berry shareholders have previously sued over the deal’s valuation, and any legal pushback post-merger could disrupt synergy timelines.
• Economic Volatility: Packaging demand is tied to consumer goods and industrial sectors, which could suffer if global growth slows.

Conclusion: A Shrewd Move, but Success Hinges on Execution

The EC’s approval removes a major overhang, but the real test begins April 30. If Amcor and Berry can deliver on their $300 million annual synergy target—a figure representing ~2% of combined sales—they’ll solidify their position as a leader in sustainable packaging.

Investors should monitor AMCR’s Q3 results closely, particularly for signs of cost savings and revenue growth in high-margin areas like pharmaceutical and food packaging. Meanwhile, the stock’s recent performance (see visualization above) suggests markets are pricing in a positive outcome, but execution risks remain.

With a combined market cap of $8.5 billion (as of April 2025), the new entity will need to demonstrate scalability to justify its valuation. For now, the regulatory green light is a win—but the real value lies in what happens next.

Data sources: European Commission press releases, Amcor and Berry 2024 Form 10-K filings, and industry revenue estimates.