Plastic packaging manufacturers Amcor and Berry Global Group entered into a definitive agreement to combine in an all-stock transaction that is valued at $8.43 billion.

The deal represents a premium of approximately 10% to Monday’s closing share price for Berry, with Amcor valuing Berry’s common stock at $73.59 per share.  Amcor and Berry shareholders will respectively own about 63% and 37% of the combined company upon closing.

According to a Nov. 19 news release, the combination creates a global leader in customer packaging, with expanded offerings in flexible and converted films, scaled containers and closures and a healthcare portfolio. The combined company will drive innovation, accelerate growth, address sustainability and create value for shareholders.

“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,” Amcor CEP Peter Konieczny said in the news release. “We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility.”

Switzerland-based Amcor develops and products packaging for food, beverage, pharmaceutical, medical, home and personal- are. The company operates from approximately 212 locations across 40 countries.

Additionally, Evansville, IN-based Berry Global operates from more than 240 locations across the global to develop, design and manufacture packaging products for its customers.

“Our combination with Amcor is a logical next step in our company’s evolution, and it is a testament to our entire team that we’re well positioned to build on this momentum and deliver even more value to our shareholders,” Berry Global CEO Kevin Kwilinski said. “We expect to better serve customers through a comprehensive and innovative consumer packaging portfolio and a complementary geographic coverage.”

Amcor’s fiscal 2024 ended June 30, in which it had total sales of $13.6 billion and net profit of $730 million. Berry’s fiscal 2024 ended Sept. 30, in which it had total sales of $12.3 billion.

The boards of directors of both companies unanimously approved the transaction, which is expected to close by mid-2025.