TLDR
- Amcor secured final European Commission approval for its $8.4B merger with Berry Global
- The merger is set to complete on April 30, 2025, with Amcor holding 63% of the combined company
- Amcor reported Q2 fiscal 2025 revenue of $3.24B with 2.3% shipment volume growth
- The company maintains a 5.35% dividend yield with a quarterly payment of $0.1275
- Amcor has a history of 41 consecutive years of dividend growth and trades at a P/E of 10.9
Amcor plc and Berry Global Group have cleared their final regulatory hurdle as the European Commission granted unconditional approval for their planned $8.4 billion merger. The deal, set to close on April 30, will create a packaging powerhouse with Amcor holding approximately 63% of the combined entity.
The approval follows earlier clearances from antitrust authorities in the United States, China, and Brazil.
The merger, first announced in November 2024, received shareholder approval from both companies in February 2025.
Under the agreement terms, Berry shareholders will control about 37% of the new company.
The combined entity plans to focus on consumer packaging solutions with an emphasis on sustainable products, global reach, and supply chain flexibility.
This comes as Amcor continues to demonstrate solid financial performance despite economic headwinds.
In its second quarter fiscal 2025 results, Amcor reported revenue of $3.24 billion, marking a slight 0.3% decrease compared to the same period last year.
However, shipment volumes grew by 2.3% year-over-year, building on the 1.6% gain in the first quarter.
This represents the fourth consecutive quarter of volume growth for the company.
On a comparable constant currency basis, adjusted EBIT rose by approximately 5% to $363 million.
Dividend Performance in Uncertain Times
Amcor continues to reward shareholders with a quarterly dividend of $0.1275 per share, yielding 5.35% as of April 27.
The company has an impressive track record of 41 consecutive years of dividend growth.
This consistent dividend history makes Amcor an attractive option for investors seeking stable income during economic uncertainty.
With a forward P/E ratio of 10.9 as of April 27, Amcor shares appear to be trading below their intrinsic value.
This valuation places the company among the more affordable quarterly dividend stocks available to investors.
Dividend stocks like Amcor have historically performed well during economic downturns, according to market analysts.
Companies that maintain dividend programs typically generate sufficient cash flow to sustain payments year after year.
Such dividend commitments often signal strong financial discipline, as most companies prefer to avoid altering their dividend policies.
A Morningstar report indicated that dividend-paying stocks outperformed the broader market during recessions beginning in July 1981, March 2001, and December 2007.
The report found that dividend growth stocks, in particular, have provided the most appealing long-term returns.
These findings come as recent economic data has raised concerns about a potential slowdown.
Business surveys from ISM and S&P Global have highlighted increasing worries among companies about the impact of new tariffs.
The S&P Global survey projects an annual GDP growth rate of only around 1% for the first quarter, while some models suggest the possibility of a contraction.
Consumer sentiment dropped 8% in April compared to March, reaching a final reading of 52.2, according to the University of Michigan survey.
This represents the fourth-lowest level in records dating back to 1952.
The merger with Berry Global positions Amcor to better weather these economic uncertainties while continuing its commitment to dividend growth.
The deal will complete on April 30, 2025, subject to the satisfaction of remaining closing conditions.
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