Amcor (ASX:AMC) strategic acquisition of US-based Berry Global is expected to strengthen its market position and lower costs, multiple media outlets reported Monday.

In November, Amcor said it will merge with rival plastics packaging company Berry Global via an all-stock deal.

The merger enables the combined entity to navigate ongoing market volatility and offers enhanced procurement scale and improved research and development capabilities, the reports said.

The deal is also expected to help the combined entity advance along the cost curve, benefiting from increased procurement scale and enhanced R&D capabilities.

Despite slower organic growth in the packaging sector, Amcor is expected to outperform peers from its acquisition, driven by AU$530 million in cost savings and AU$120 million in synergies, the reports added.

Additionally, Amcor could exceed its initial synergy targets, further boosting its profitability.

The recovery in flexible packaging volumes and stabilization in the rigid packaging sector, are expected to contribute positively to the company's outlook.

Due to the upside of the merger, Citi upgraded Amcor's rating to buy from neutral and raised its price target to AU$19, the reports added.

Shares of Amcor rose nearly 2% in recent Tuesday trade.