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

Amcor Plc (AMCR.US) has agreed to acquire Berry Global Group (BERY.US) for approximately $8.4 billion, resulting in the merger of the two largest packaging manufacturers globally. According to a statement, Berry shareholders will receive 7.25 shares of Amcor stock for each Berry share, with a purchase price of $73.59 per share, representing a premium of around 10% over Monday's closing price. The statement mentions that Amcor shareholders will hold approximately 63% of the merged company, which will have revenues of $24 billion. The packaging industry has seen a series of transactions in recent months, with notable mergers including International Paper Company's acquisition of DS Smith Plc, and Smurfit Kappa Group agreeing to acquire WestRock Plc. Amcor focuses on a range of food and beverage packaging products, as well as healthcare and other packaging markets. Berry Global's products include trash bags, bottles, and other packaging. Both companies stated that they expect the transaction to be completed by the middle of next year; and anticipate $650 million in benefits from cost savings and other synergies by the end of the third year after completion. Amcor CEO Peter Konieczny will serve as CEO of the merged company, which will still be headquartered in Switzerland. In pre-market trading on Tuesday, Berry's stock price rose by 4.98% to $70.39 per share, and Amcor's stock price increased by 1.48%.