Packaging

Merger between Rock-Tenn and MeadWestvaco

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The North-American paper and packaging producer Rock-Tenn took over its US rival MeadWestvaco with an agreement worth about 9.2 billion dollars. The objective of this operation is creating the second largest packaging producing company worldwide. MeadWestvaco shareholders will control 50.1% of the new company, while those of Rock-Tenn the remaining 49.9%. The merger between Rock-Tenn and MeadWestvaco, which is likely to be finalised in the second quarter of this year, will bring about annual cost cuts of 300 million dollars. The new company will employ 42 000 people in 30 countries in America, Europe and Asia. Furthermore, more financial flexibility will be generated thanks to the merger.