The deal was announced today (19 November).

The two groups said the definitive merger agreement had gained unanimous approval from the boards of directors at both companies.

Berry shareholders are set to receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held.

This will result in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.

The deal values Berry’s common stock at $73.59 (£58.18) per share.

Berry Global Group employs in excess of 40,000 people and has more than 240 facilities around the world, including multiple sites in the UK.

Following the spin-off of its Health, Hygiene and Specialties Global Nonwovens and Films (HHNF) business it has centred its offering around consumer-focused packaging.

The two firms cited a number of “compelling strategic benefits”, including a global product offering in flexibles, containers and closures; and bringing together two complementary healthcare businesses.

Amcor CEO Peter Konieczny commented: “This combination delivers on our strategy to accelerate growth by putting the customer first, elevating the role of sustainability and orienting the portfolio toward faster growing, higher margin categories.

“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility. We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent.”

Combined revenues will be around $24bn, with expected cost benefits and financial savings of $650m by the end of year three.

Berry CEO Kevin Kwilinski said: “Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimizing our portfolio.

“Our combination with Amcor is a logical next step in our company’s evolution, and it is a testament to our entire team that we’re well positioned to build on this momentum and deliver even more value to our shareholders.”

The HHNF business comprised Health, Hygiene and Specialties Global Nonwovens and Films.

He added: “Importantly Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence. We will be better together, and I look forward to all we will achieve as a combined organisation.”

The transaction is subject to shareholder and regulatory approval, and customary closing conditions. The target date for completion is mid-2025.

The combined entity will be renamed Amcor PLC, with the global head office in Switzerland.

Amcor had sales of $13.64bn in its most recent financial year. Berry Global Group had sales of $12.3bn.