On December 21, 2023, PrimeStone Capital LLP announced that it has sent a letter to the Board of Directors of Smurfit Kappa Group plc to express its reservations with the Westrock acquisition and ask the Company to consider strategic alternatives that it believes could create significantly more value for shareholders. One such alternative would be a transformational combination with International Paper (IP) to create an uncontested pure-play global leader in corrugated packaging. The Company?s Board rejected International Paper?s friendly approach in 2018 on valuation grounds but many parameters have changed since then, and an attractive deal may now be possible.

PrimeStone stated that it has approached the Westrock transaction with an open mind, its findings have been mixed, and reservations stem from the following observations: i) the strategic rationale of a combination with Westrock is questionable; ii) the proposed transaction presents insignificant financial benefits to the Company?s shareholders. PrimeStone added that the Westrock transaction risks deteriorating the Company?s business profile by creating a higher-cost, less integrated company, whilst increasing leverage for modest financial benefits for the Company?s shareholders.