The path for private equity firm Clayton, Dubilier & Rice (CD&R) to acquire packaging company Sealed Air has grown less obstructed. A critical 30-day “go-shop” period, which allowed Sealed Air to solicit superior proposals, concluded on December 16, 2025. This expiration significantly diminishes the likelihood of a competing bid emerging, leading market participants to view the planned transaction as increasingly certain.
Transaction Timeline and Next Hurdles
Sealed Air first entered into a definitive agreement with CD&R in mid-November 2025. While the go-shop window has now closed, several formal steps remain before the deal can be finalized. Shareholder approval and the receipt of necessary regulatory clearances are still required. The transaction is anticipated to close around mid-2026. Until then, a minor degree of regulatory risk persists, which may account for modest price fluctuations in the company’s shares.
Institutional Activity Points to Arbitrage Play
Recent regulatory filings reveal that certain institutional investors are adjusting their holdings ahead of the expected closing. Notably, Luminus Management increased its position by approximately 15.1%, bringing its total to nearly 500,000 shares. Moves of this nature typically indicate that merger arbitrage strategies are being deployed. Investors are seeking to capitalize on the remaining spread between the current trading price and the eventual acquisition value.
Should investors sell immediately? Or is it worth buying Sealed Air?
Key Data Points:
* Go-Shop Period End Date: December 16, 2025
* Agreement with CD&R Announced: Mid-November 2025
* Expected Closing: Mid-2026 (subject to approvals)
* Recent Trading Price: €35.40
* Discount to 52-Week High: Approximately 6.35%
Share Price Behavior and Forward Outlook
Sealed Air’s stock is currently trading at €35.40, which sits about 6.35% below its 52-week peak. This price action is characteristic of a merger arbitrage scenario, with the shares exhibiting a narrow trading range and low volatility relative to broader market movements.
For existing shareholders and arbitrage traders, the upcoming milestones are clear. The primary events to watch are the scheduling of a shareholder vote and the progression of regulatory reviews. Provided these conditions are satisfied as planned, the transaction should conclude with shareholders receiving the agreed-upon cash consideration.
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