Amcor (AMCR) and Berry Global (BERY) on Tuesday agreed to merge in an all-stock deal worth roughly $8.43 billion to create a combined consumer and healthcare packaging solutions company.

Under the terms of the deal, investors of Berry will receive 7.25 shares of Amcor for each share they own in the company. The proposed exchange ratio values Berry's stock at $73.59 apiece, giving the deal a value of about $8.43 billion, according to MT Newswires' calculations.

The transaction, which requires approval from regulators and shareholders, is expected to be completed in the middle of next year. Berry's shares gained 4% in premarket activity, while Switzerland-based Amcor's shares listed on the New York stock exchange declined 1.5%.

Following completion of the deal, Amcor's stockholders are expected to own about 63% of the combined company, which will be named Amcor plc, while Berry shareholders will hold the remaining 37% stake. Amcor will maintain its primary listing on the NYSE.

The combined company is expected to have $24 billion in revenue and adjusted earnings before interest, taxes, amortization and depreciation of $4.3 billion, including run-rate synergies. The companies anticipate more than 35% adjusted cash per-share earnings accretion and double-digit return on investment from the deal. The transaction is estimated to generate $650 million in cost, growth and financial synergies by the end of the third year.

"We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility," Amcor Chief Executive Peter Konieczny said in a joint statement. "As a result, this combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders."

Konieczny will serve as chief executive of the combined company, while Amcor Chairman Graeme Liebelt will serve in the same role. The merged entity's global head office will be in Zurich, with plans to maintain a "significant presence" in Indiana.

"Our combination with Amcor is a logical next step in our company's evolution," Berry CEO Kevin Kwilinski said. "We expect to better serve customers through a comprehensive and innovative consumer packaging portfolio and a complementary geographic coverage."

In a separate statement, Berry reported fiscal fourth-quarter adjusted earnings of $2.27 per share, down from $2.28 the year before. The consensus on FactSet was for EPS of $2.08. Sales for the September quarter inclined 3% to $3.17 billion, topping FactSet's view for $3.13 billion.

For fiscal 2025, Berry said it projects adjusted EPS to be in a range of $6.10 to $6.60, while the Street is looking for $7.51.