Ball Corporation in talks to buy Rexam to form beverage can giant
The world’s largest drinks can manufacturer has approached the second largest, with a view to an acquisition worth up to £4.3bn.
Ball Corporation is in discussions to acquire UK can manufacturer Rexam, which it values at £6.10 per share, to be divided between one-third cash and two-thirds Ball Corp. shares. The US-based company has been given a 5pm deadline on 5 March to make an offer.
A merger between Ball Corp. and Rexam would produce the world’s largest can manufacturer by far, dwarfing US rivals Crown which holds less than a fifth of the market share. The Financial Times reports that the resulting entity would hold about 61% of the market for drinks cans in North America.
"Any deal between the two… can makers would have to result in large-scale asset sales across several regions to appease competition authorities, seen to be the main obstacle to a potential takeover," the newspaper said.
In a statement, Rexam said: "Discussions on other matters are continuing and there can be no certainty any formal offer will be forthcoming, or as to the terms of any offer. A further announcement will be made when appropriate."
Source | FoodBev.com