Amcor Plc Announces $8.43 Billion Acquisition of Berry Global

Switzerland-based packaging company Amcor Plc announced on Tuesday its agreement to acquire U.S.-based Berry Global in an all-stock transaction valued at $8.43 billion. This strategic acquisition aims to solidify Amcor’s position in the global consumer and healthcare packaging markets. Under the terms of the deal, Berry Global shareholders will receive $73.59 per share, representing a 9.75% premium over Berry’s previous closing price. The announcement led to a 7% rise in Berry Global’s share value in pre-market trading.

According to industry analysts, the global packaging industry is seeing increased consolidation as companies adjust their operations in response to changes in consumer demand and the effects of the COVID-19 pandemic on e-commerce growth. In a similar move earlier this year, International Paper, a U.S.-based firm, agreed to acquire British packaging company DS Smith for 5.8 billion pounds, equivalent to $7.2 billion, in an all-share agreement.

The combined entity, post-acquisition, will have a broad operational footprint across over 140 countries, manufacturing cartons, closures, and containers for various sectors including food, beverage, pharmaceutical, medical, home, and personal care. Amcor’s CEO, Peter Konieczny, expressed confidence in the merger, stating, «This combination also drives a step change in annual free cash flow, earnings growth, and value creation for our shareholders.» Konieczny is set to lead the merged company as its CEO.

The newly formed company, maintaining the Amcor Plc name, is projected to achieve combined revenues amounting to $24 billion and adjusted earnings of $4.3 billion annually, considering anticipated synergies. The merger is slated for completion by mid-2025, and the company will have its primary listing on the New York Stock Exchange (NYSE).

The announcement was reported by Savyata Mishra and Ananya Mariam Rajesh from Bengaluru, with editorial adjustments made by Mrigank Dhaniwala and Sriraj Kalluvila. Further information regarding corporate standards and reporting practices can be found on their respective platforms.