Australia’s packaging company, Amcor Limited (ASX: AMC), is acquiring NYSE listed Bemis for all-stock transaction. With the fixed stock exchange ratio of 5.1 Amcor share for each Bemis share, Amcor shareholders cling to 71% of ownership over 29% of Bemis holdings in newly created “New Amcor.”
Early this day, the boards of leading consumer packaging companies, Amcor and Bemis, announced their merger through newly formed “New Amcor”, incorporated in Jersey. The New Amcor will have a primary listing on New York Stock Exchange and an ASX listing via CHESS Depository Interest.
The key selling point of the deal lies in the cost synergy potential of approximately US$ 180 million. This merger transaction represents the potential to grow through delivery of cost synergies resulting to give double digit returns to its shareholders.
The purchase consideration for the transaction amounts to premium price of US$75.75 per Bemis share, based on Amcor’s A$15.28 per share.
Amcor’s management continues to lead the newly incorporated New Amcor. While Graeme Liebelt continues to chair, 8 current Amcor directors and 3 current Bemis directors are reported to be on board with Ron Delia serving to be the only executive director of the company.
Following to Amcor-Bemis merger deal announcement, AMC shares fell by 5.8% to $14.390.
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