Amcor Buys Consumer Packaging Rival Berry Global in $8.4 Billion All-Stock Deal

Amcor (AMCR) has reached a deal to acquire rival consumer packaging company Berry Global Group (BERY) in an $8.4 billion all-stock transaction.

The merger values Berry’s stock at $73.59 per share, a roughly 10% premium over Monday’s closing price of $67.05. Shares of Berry rose 4% to $70 before the opening bell Tuesday, while U.S.-listed Amcor shares slid less than 1%. 

Under the deal, Berry stockholders will receive 7.25 Amcor shares for each Berry share they hold. Amcor shareholders will hold two-thirds of the combined company, while Berry shareholders will hold one-third. Amcor CEO Peter Konieczny will keep the same role at the combined company.

The companies have a combined annual revenue of $24 billion, and Amcor says the deal will create $650 million in cost savings and other financial synergies for the combined company by the end of the third year. They also anticipate $180 million in annual research and development investments toward sustainable packaging solutions and other initiatives.