15th Jan 2016 11:25
LONDON (Alliance News) - Ball Corp on Friday said it has received conditional regulatory clearance in Europe from the European Commission for its proposed acquisition of beverage can maker Rexam PLC.
As part of the conditional clearance, Ball Corp must divest eight of its existing European metal beverage can manufacturing plants and two end plants, along with two of Rexam's metal beverage can manufacturing plants.
Upon closing of the proposed offer, the combined company will operate Rexam's remaining 13 European beverage can manufacturing plants and two end plants, as well as three Rexam can plants and one end plant in Russia, and Ball Corp's manufacturing plants in Bierne in France, Belgrade in Serbia, and Lublin in Poland.
Ball Corp also intends to move its European regional support office to Rexam's Luton, UK location and will retain Rexam's research and development centre in Tongwell in the UK.
The news comes after Ball Corp received conditional regulatory approval in Brazil in December for the merger, under which it agreed to divest its plants in Alagoinhas and Jacareí. The combined company will operate Ball's remaining beverage can and end manufacturing plant in Três Rios and end plant in Simões Filho, as well as Rexam's 12 existing metal beverage manufacturing plants in South America.
Ball Corp said it expects to obtain the remaining regulatory clearances in time for the GBP4.3 billion acquisition to close during the first half of 2016.
Shares in Rexam were trading up 0.1% at 602.50 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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