Australia’s Amcor in US$6.8b takeover of US rival

SYDNEY: Australian firm Amcor announced a US$6.8 billion (RM27.71 billion) buyout of United States rival Bemis yesterday to become the world’s largest plastic packaging group.

Amcor will issue 5.1 of its shares for each Bemis share under the deal, in a transaction that will see Bemis shareholders holding 29 per cent of the combined company and Amcor the rest.

It represents a 25 per cent premium to Bemis’ closing price of US$46.31 on August 2.

Chief executive Ron Delia said the deal made sense in an industry undergoing consolidation.

“The rationale for this combination and the financial benefits are compelling for both Amcor and Bemis shareholders,” he said. Delia added that there was an increasing number of opportunities to capitalise on shifting consumer needs and the demand for more responsible, eco-friendly packaging solutions.

“The combination of Bemis and Amcor is transformational, bringing together two highly complementary firms to create a global leader in consumer packaging,” said Bemis chief executive William F. Austen.

Amcor produces rigid and flexible packaging for food, beverage, pharmaceutical, medical, home, personal care and other products, operating in 40 countries with more than US$9 billion in sales annually.

Bemis operates in a similar vein but on a smaller scale, generating US$4 billion in sales last year.

The deal is expected to be concluded in the first quarter of next year.