Packaging solutions company Amcor (NYSE:AMCR) has agreed to acquire peer Berry Global Group (NYSE:BERY) in a $8.4B all-stock transaction.

The transaction values Berry's (BERY) common stock at $73.59 a share. Berry (BERY) shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing, resulting in Amcor and Berry shareholders owning around 63% and 37% of the combined company, respectively.

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

The combined entity will be named Amcor plc, led by Peter Konieczny as CEO and Graeme Liebelt as chairman. Amcor will maintain its primary listing on the NYSE and its secondary listing on the ASX.

The deal will provide $650M benefit in identified cost, growth and financial synergies by the end of third year, orienting the portfolio toward faster growing, higher margin categories such as healthcare, protein, pet food and beauty, Amcor said. While global HQ will remain in Zurich, Switzerland, the combined company expects to maintain a significant presence in Evansville, Indiana.

Amcor CEO Peter Konieczny said, “this combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders.”

The closing of the transaction is subject to shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions.

AMCR shares were up 2% premarket on Tuesday, while BERY rose 3.3%.