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RICHMOND, Va. — Rock-Tenn and MeadWestvaco will join forces to create a $16 billion global packaging company, driving down its own costs and possibly the scale to better dictate prices.
The new company will have combined sales of $15.7 billion, and its board will include eight directors from Rock-Tenn and six directors from MeadWestvaco. Within three years, the deal is expected to result in annual cost savings of $300 million, though officials did not say if the savings would include job cuts.
MeadWestvaco has gone from a mill-centric paper supplier to a global packaging maker for brands like Procter & Gamble Co., Coca-Cola and Walmart.
