Rexam completes three-year revamp with £1.3bn US buy
Rexam, the British packaging group, joined the global giants of the packaging industry yesterday when it struck an agreed deal to buy American National Can for £1.3bn.
The cash deal makes Rexam one of the five largest consumer packaging groups in the world with powerful positions in Europe and the United States. ANC is already the world's second-largest maker of soft drinks cans and the biggest player in Europe. The combined group would make 40 per cent of Coca-Cola's cans worldwide.
However, analysts said the deal could fall foul of the European competition authorities as the enlarged group would have more than 50 per cent of the European market. "That kind of share sounds horrible," one analyst said. "There may be some regional issues though it could get through with some minor adjustments."
Rexam, which had previously been linked with a possible bid for Schmalbach-Lubeca of Germany, admitted the possibility of regulatory problems in Europe but said there was relatively little overlap.
Rolf BÃ¶rjesson, Rexam's chief executive, said the deal was an important strategic step "The acquisition of ANC completes our three-year programme to reshape Rexam around its consumer packaging activities and make it a world leader in the sector," he said.
Commenting on the rationale of the deal he added: "Our customers are getting bigger and becoming more global. They are looking for large global suppliers to work with."
Rexam's debt will rise to £1.9bn as a result of the deal. However, the company yesterday announced plans to sell all its non-packaging businesses. These chiefly include its coated film products paper division as well as the building and engineering operation which should raise around £700m.
The ANC deal has the irrevocable acceptance of Pechiney, the French group which controls 45 per cent of ANC's equity. Pechiney acquired ANC in 1989 from Triangle Industries, the canning empire put together by US buy-out specialists Nelson Pelz and Peter May with the help of Michael Milken's junk bonds.
ANC recorded operating profits of £168m on sales of £1.4bn last year. Rexam shares closed 12.25p higher at 226.25p.
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...