Ireland’s Jefferson Smurfit Group and Dutch firm Kappa Packaging are planning to merge operations, building a packaging colossus spanning 32 countries and employing 43,000 people. Smurfit shareholders will have a 58.3 per cent stake, with Kappa shareholders taking the rest and also getting e300m in cash and e75m via a subordinated promissory note.

Capacity of the combined company will include 5.1m tonnes of corrugated, making it the world number one in this sector, and 6.1m tonnes of containerboard, giving it leadership in Europe with close to a quarter of the entire market. In Latin markets it will be the outright leader in both sectors.