WestRock stock rallies on $11B merger deal with Smurfit Kappa

WestRock Co.’s stock
WRK,
+2.76%
was up 8.2% as a leading gainer in premarket trading Tuesday as the packaging company confirmed plans to merge with Smurfit Kappa Group
SK3,
-10.21%
to form Smurfit WestRock. WestRock shareholders will receive $43.51 a share for each share through a combination of $5 per share in cash and one new share of Smurfit WestRock. The deal values WestRock at about $11 billion. Smurfit Kappa shareholders will own 50.4% of the combined company, while WestRock stockholders are expected to own about 49.6% of Smurfit WestRock. The companies had confirmed merger talks last week.