Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Packaging companies Rock-Tenn, MeadWestvaco to merge

[January 26, 2015]  (Reuters) - Packaging companies Rock-Tenn Co and MeadWestvaco Corp  said they would combine to form a company worth $16 billion, with MeadWestvaco shareholders owning a majority stake.

In the new company, which will be named before the deal closes, MeadWestvaco shareholders will have a 50.1 percent stake, while Rock-Tenn shareholders will hold the rest.

MeadWestvaco shareholders will receive 0.78 shares of the new company for each share held.

Rock-Tenn shareholders can choose to receive either one share of the new company for each share held or a cash amount equal to the average price of Rock-Tenn shares during a five-day period ending three trading days before the deal closes.

Rock-Tenn Chief Executive Steven Voorhees will lead the new company, while MeadWestvaco CEO John Luke will become non-executive chairman.

MeadWestvaco will complete a previously announced spinoff of its chemicals business after the merger, the companies said.

(Corrects to "before" from "after" in paragraph 2)

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Saumyadeb Chakrabarty)

[© 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.