Rock-Tenn Co. and MeadWestvaco Corp. said on Monday they have agreed to combine in a stock-swap deal that will create a $16 billion global packaging company. Under the agreement, MeadWestvaco shareholders will get 0.78 shares of the new company for each share they hold, while Rock-Tenn shareholders will receive either one share of the combined company or cash. The new company will be named before the deal closes. Combining the two companies will deliver a $300 million benefit per year over the next three years, the companies said. Shares of Rock-Tenn and MeadWestvaco were little changed in premarket trade.
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