RICHMOND, Virginia (AP) — Rock-Tenn and MeadWestvaco are joining to form a $16 billion packaging company.
As part of the deal, MeadWestvaco Corp. stockholders will receive 0.78 shares of the combined company for each share they own. Rock-Tenn shareholders will be allowed to choose either 1 share of the combined company or a specific cash amount for each RockTenn share held.
Rock-Tenn CEO Steven Voorhees will be the CEO of the new company.
The boards of both companies approved the deal, which still needs approval from shareholders.
The company, which has not been named as of Monday, will have combined sales of $15.7 billion and its board will include eight directors from Rock-Tenn and six directors from MeadWestvaco.
The tie-up is expected to close in the second quarter.