Berry Global Group Inc (NYSE: BERY) saw its stock surge by 5.79% in pre-market trading on Wednesday, fueled by the announcement of a merger agreement with packaging giant Amcor plc (NYSE: AMCR).

The two companies revealed plans to combine in an all-stock transaction, creating a global leader in consumer packaging solutions. Under the terms of the deal, Berry Global shareholders will receive 7.25 shares of Amcor for each share of Berry Global they hold, valuing Berry at $8.5 billion in equity.

The merger is expected to generate significant synergies and cost savings, with an estimated $650 million in annualized synergies by the end of the third year following the deal's close. The combined company is projected to achieve annualized earnings per share growth of 10% to 15%, while paying out approximately $1.1 billion in dividends annually.