Smurfit Westrock plc (NYSE: SW, LSE: SWR) (\u201cSmurfit Westrock\u201d) announces that the arbitral tribunal (the \u201cTribunal\u201d) constituted under the auspices of the World Bank\u2019s International Centre for Settlement of Investment Disputes (\u201cICSID\u201d) issued an award on August 28, 2024 granting Smurfit Holdings BV (\u201cSmurfit\u201d), a wholly owned subsidiary of Smurfit Westrock, compensation in excess of US$468.7 million, plus legal costs of US$4.5 million, plus interest from May 31, 2024 until the date of payment (the \u2018Award\u2019). <\/p>\n\n\n\n
The Award was issued in relation to Smurfit\u2019s arbitration claims against the Bolivarian Republic of Venezuela (\u201cVenezuela\u201d) pursuant to the Agreement on encouragement and reciprocal protection of investments between the Kingdom of the Netherlands and the Republic of Venezuela (the \u201cTreaty\u201d), initially filed in December 2018. As previously reported, following the August 2018 government occupation, Smurfit Kappa Group\u2019s Venezuelan operations were deconsolidated. <\/p>\n\n\n\n
By majority, the Tribunal dismissed Venezuela\u2019s objections to its jurisdiction, and held that Venezuela breached the Treaty\u2019s protection against unlawful expropriation (Article 6), the Treaty\u2019s protection against unfair and inequitable treatment and arbitrary and discriminatory measures (Article 3), and the Treaty obligation to guarantee the repatriation of dividends without undue restriction or delay (Article 5). These breaches arose from Venezuela\u2019s seizure of Smurfit\u2019s Venezuelan subsidiaries\u2019 landholdings, Venezuela\u2019s failure to issue VAT refunds to Smurfit\u2019s subsidiaries, Venezuela\u2019s failure to permit the transfer of Smurfit\u2019s subsidiaries\u2019 dividends without undue restriction and delay, and finally, Venezuela\u2019s seizure of Smurfit\u2019s Venezuelan business in 2018. The Tribunal majority concluded that Venezuela\u2019s occupation of Smurfit\u2019s Venezuelan subsidiaries in 2018 \u201cconstitute[s] an expropriation that was not taken in the public interest and was not compliant with due process of law\u201d. <\/p>\n\n\n\n
Smurfit Westrock will now pursue the full value of the Award from Venezuela.<\/p>\n\n\n\n
Tony Smurfit, Smurfit Westrock CEO, commented: \u201cWe are pleased with the award of the ICSID tribunal. It validates our assertion that our Venezuelan business was unlawfully expropriated in 2018. While the award cannot compensate us for the full loss in relation to our operations in Venezuela, including the significant impact it had on our people and the wider community there, we will now pursue the full value of this award from the Venezuelan government\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Smurfit Westrock plc (NYSE: SW, LSE: SWR) (\u201cSmurfit Westrock\u201d) announces that the arbitral tribunal (the \u201cTribunal\u201d) constituted under the auspices of the World Bank\u2019s International Centre for Settlement of Investment Disputes (\u201cICSID\u201d) issued an award on August 28, 2024 granting Smurfit Holdings BV (\u201cSmurfit\u201d), a wholly owned subsidiary of Smurfit Westrock, compensation in excess of<\/p>\n","protected":false},"author":1,"featured_media":14310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[153],"class_list":{"0":"post-14309","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-corrugated-folding-carton","8":"tag-smurfit-kappa"},"_links":{"self":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/14309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/comments?post=14309"}],"version-history":[{"count":1,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/14309\/revisions"}],"predecessor-version":[{"id":14311,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/14309\/revisions\/14311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media\/14310"}],"wp:attachment":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media?parent=14309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/categories?post=14309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/tags?post=14309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}