Two packaging giants merge! Amcor (AMCR.US) to acquire Berry Global (BEY.US) for $8.4 billion

Zhitong Finance learned that Amcor PLC (AMCR.US) has agreed to buy Berry Global Group (BEY.US) for about $8.4 billion, merging the world's two largest packaging producers. In a statement, Berry shareholders will receive 7.25 shares of Amcor for each share of Berry in an all-stock deal, valuing the company at $73.59 per share, a premium of about 10% to Monday's closing price. Amcor shareholders will own about 63% of the combined company, which will have revenue of $24 billion, the statement said.

The packaging industry has seen a series of deals in recent months, including International Paper Co. (IP.US) buying DS Smith PLC and Smurfit Kappa Group agreeing to buy WestRock PLC.

Amcor focuses on a range of food and beverage packaging, as well as healthcare and other packaging markets. Berry Global's products include trash bags, bottles and other packaging. The companies said the deal is expected to close in the middle of next year; and expect to generate $650 million in cost and other synergies by the end of the third year after the deal closes. Amcor CEO Peter Konieczny will serve as CEO of the combined company, which will remain headquartered in Switzerland.

As of the time of writing, Berry's stock rose 4.98% to $70.39 and Amcor's stock rose 1.48% before the US market opened on Tuesday.