Smurfit Westrock Announces ICSID Award in Dispute with Venezuela
29 Août 2024 - 5:58PM
Business Wire
Smurfit Westrock plc (NYSE: SW, LSE: SWR)(“Smurfit Westrock”)
announces that the arbitral tribunal (the “Tribunal”) constituted
under the auspices of the World Bank’s International Centre for
Settlement of Investment Disputes (“ICSID”) issued an award on
August 28, 2024 granting Smurfit Holdings BV (“Smurfit”), 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 ‘Award’).
The Award was issued in relation to Smurfit’s arbitration claims
against the Bolivarian Republic of Venezuela (“Venezuela”) pursuant
to the Agreement on encouragement and reciprocal protection of
investments between the Kingdom of the Netherlands and the Republic
of Venezuela (the “Treaty”), initially filed in December 2018. As
previously reported, following the August 2018 government
occupation, Smurfit Kappa Group’s Venezuelan operations were
deconsolidated.
By majority, the Tribunal dismissed Venezuela’s objections to
its jurisdiction, and held that Venezuela breached the Treaty’s
protection against unlawful expropriation (Article 6), the Treaty’s
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’s seizure of Smurfit’s Venezuelan subsidiaries’
landholdings, Venezuela’s failure to issue VAT refunds to Smurfit’s
subsidiaries, Venezuela’s failure to permit the transfer of
Smurfit’s subsidiaries’ dividends without undue restriction and
delay, and finally, Venezuela’s seizure of Smurfit’s Venezuelan
business in 2018. The Tribunal majority concluded that Venezuela’s
occupation of Smurfit’s Venezuelan subsidiaries in 2018
“constitute[s] an expropriation that was not taken in the public
interest and was not compliant with due process of law”.
Smurfit Westrock will now pursue the full value of the Award
from Venezuela.
Tony Smurfit, Smurfit Westrock CEO, commented: “We 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”.
Forward-Looking Statements
This press release contains forward-looking information that
involves risks and uncertainties, including relating to the pursuit
of the Award from Venezuela by Smurfit Westrock. Statements that
are not historical facts, including statements about the beliefs
and expectations of the management of Smurfit Westrock, are
forward-looking statements. Words such as “may”, “will”, “could”,
“should”, “would”, “anticipate”, “intend”, “estimate”, “project”,
“plan”, “believe”, “expect”, “target”, “prospects”, “potential”,
“commit”, “forecasts”, “aims”, “considered”, “likely”, “estimate”
and variations of these words and similar future or conditional
expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. Actual
future results, including whether the Award will be recovered in
part or in full, could vary from those expressed or implied by the
forward-looking information in this press release. This
forward-looking information is given as of the date of this press
release. Neither Smurfit Westrock nor any of its associates or
directors, officers or advisers provides any representation,
assurance or guarantee that the occurrence of the events expressed
or implied in any such forward-looking statements will actually
occur. You are cautioned not to place undue reliance on these
forward-looking statements. Other than in accordance with its legal
or regulatory obligations (including under the UK Listing Rules,
the Disclosure Guidance and Transparency Rules, the UK Market Abuse
Regulation and other applicable regulations), Smurfit Westrock is
under no obligation, and Smurfit Westrock expressly disclaims any
intention or obligation, to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Smurfit Westrock
Smurfit Westrock is a leading provider of paper-based packaging
solutions in the world, with approximately 100,000 employees across
40 countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240829024937/en/
Ciarán Potts Smurfit Westrock T: +353 1 202 71 27 E:
ir@smurfitwestrock.com
FTI Consulting T: +353 1 765 0800 E:
smurfitwestrock@fticonsulting.com
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