Amcor and Berry Global have filed a definitive joint proxy statement with the US Securities and Exchange Commission (SEC).
This filing represents a pivotal step towards finalising their merger through an all-stock transaction, initially unveiled last November.
The joint proxy statement includes notifications for upcoming shareholder meetings for both Amcor and Berry that are scheduled to occur concurrently on 25 February 2025.
Under the terms of the definitive merger agreement, the two entities will amalgamate to form an entity in consumer and healthcare packaging solutions.
The entity will have a portfolio that spans flexible film, containers, closures, and dispensing systems.
At the time of signing the merger agreement, Amcor CEO Peter Konieczny said: “This combination delivers on our strategy to accelerate growth by putting the customer first, elevating the role of sustainability and orienting the portfolio toward faster growing, higher margin categories.
"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.
“As a result, this combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders.”
As outlined in the November agreement, Berry shareholders are set to receive 7.25 Amcor shares for each Berry share they hold at closing.
This exchange ratio will result in Amcor and Berry shareholders owning approximately 63% and 37% of the new entity, respectively.
The merger is expected to increase shareholder wealth through an estimated $650m and also deliver a financial path with improved cash flow, exceeding $3bn annually.
Projections indicate that this transaction will increase adjusted cash earnings per share by more than 35% and elevate long-term shareholder value creation from an annual range of 10-15% to 13-18%.
Both companies' boards of directors have unanimously endorsed this transaction.
