Packaging giants Amcor and Berry to combine as merger landscape shows signs of heating up

Dow Jones11-19

MW Packaging giants Amcor and Berry to combine as merger landscape shows signs of heating up

By Steve Gelsi

Acquisitive Amcor is buying Berry for about $8.4 billion in stock as merger environment warms up

Berry Global Group Inc.'s stock was up 2.9% to $69.01 in premarket trading on Tuesday after the packing company agreed to be acquired by Amcor Plc for about $8.4 billion in stock in a sign that an expected surge in big mergers is underway.

Amcor $(AMCR)$ is essentially confirming recent forecasts by Wall Street bankers that major tie-ups to achieve scale will become more common in its plan to bulk up even more by buying Berry Global, the Evansville, Ind.-based specialist in consumer packaging, as well as containers for the health and hygiene market.

The deal comes just a week after $Citigroup Inc(C-N)$. Chief Executive Jane Fraser predicted a "big unlock" in deals as interest rates and the cost of borrowing fall and with the uncertainty of the presidential election in the rearview mirror.

In the case of Zurich-based Amcor and Berry, the companies are selling the deal as a win for consumers by combining their research and development capabilities to speed up sustainable packaging and grow their product offerings.

"The combined company will have unprecedented innovation capabilities and scale, and be uniquely positioned to accelerate growth, solve customers' and consumers' sustainability needs, unlock portfolio transformation and deliver significant value to both sets of shareholders," the companies said.

Berry's board agreed to a price of $73.59 a share in stock. With about 114.6 million shares of Berry stock outstanding, the deal values the company at about $8.4 billion.

Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share.

Amcor's stock dipped 0.8% in premarket trading.

-Steve Gelsi

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November 19, 2024 07:35 ET (12:35 GMT)

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Packaging giants Amcor and Berry to combine as merger landscape shows signs of heating up

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