Impressive Merger: Amcor Acquires Berry Global for 8.43 Billion Dollars

The Swiss packaging group Amcor has agreed to acquire the U.S. competitor Berry Global for an impressive $8.43 billion in stock. This merger creates a global player with a strong presence in the consumer and healthcare packaging markets. Berry Global shareholders will receive $73.59 per share, a premium of 9.75% over the last closing price. This news boosted Berry's stock price, leading to a rise of about 4% in early trading. The acquisition takes place in a consolidation-driven environment, as demand for packaging materials has significantly declined following a pandemic-related e-commerce boom. Back in April, International Paper announced an all-stock deal to acquire DS Smith for £5.8 billion. Amcor and Berry produce a wide range of packaging solutions such as cartons, closures, and containers for the food, beverage, pharmaceutical, medical, household, and personal care industries, and will be represented in more than 140 countries. This deal is one of the largest acquisitions in Amcor's history, following the company's $5.25 billion acquisition of U.S. rival Bemis in 2019. Amcor CEO Peter Konieczny told analysts that he does not see any regulatory hurdles in the agreement with Berry, as there are few overlaps. Konieczny will become CEO of the new company, which is expected to achieve a revenue of $24 billion and generate an adjusted profit of $4.3 billion, including planned synergies. The final transaction is expected to be completed by mid-2025, with Amcor as the company name and primary listing on the NYSE. Amcor is being advised by UBS and Goldman Sachs, while Berry is supported by Lazard and Wells Fargo. Meanwhile, Berry Global posted an adjusted profit of $2.27 per share for the fourth quarter, slightly exceeding analysts' expectations.