Amcor workers
(Photo : Amcor)

Amcor Plc and Berry Global Group Inc. are merging in an $8.4 billion all-stock transaction, marking a major consolidation in the global packaging industry, the companies announced on Wednesday in a joint statement. The merger is set to redefine the market landscape by leveraging the companies' complementary strengths in flexible films, containers, and converted packaging solutions along with a global healthcare portfolio. 

The deal values Berry Global at $73.59 per share, offering a 10% premium over its prior closing price. Amcor shareholders set to own 63% of the merged entity and Berry shareholders holding 37%, with Berry shareholders receiving a fixed exchange ratio of 7.25 Amcor shares for each Berry share held. The combined entity will be named Amcor plc.and will retain its primary listing in NYSE and its secondary listing in ASX.

This merger that brings together two highly complementary business reflects a strategic alignment aimed at dominating high-growth packaging segments, the companies said in the statement.

"We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility. We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent," Peter Konieczny, Amcor's CEO and future head of the combined entity said.

Berry's CEO Kevin Kwilinski, designated as deputy chair, added that "Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence. We will be better together."

Headquartered in Zurich, the combined company will retain operational hubs in Evansville, Indiana, and boast a presence in over 140 countries. With 400 production facilities, 10 innovation centres, and an employee base of 70,000, the new entity will have unprecedented geographic and operational reach.

The merger is projected to achieve synergies of $650 million annually by 2028 from cost reductions and efficiency improvements. The deal also will enhance innovation capacity, enabling the company to lead in sustainable solutions and advanced packaging technologies, the companies said.

Both companies will harness their resources to innovate greener packaging options while navigating regulatory demands for reduced environmental impact. The merger will help the companies to streamline their portfolios by combining Amcor's global flexibles and regional containers businesses with Berry's regional flexibles and global containers and closures businesses.

With a broad product portfolio, the combined entity aims to capture a larger share of high-margin markets and deliver supply chain flexibility to its 20,000+ global customers. Subject to regulatory and shareholder approvals, the transaction is expected to close in mid-2025.