Luxembourg-based packaging maker Ardagh has signed an agreement to acquire certain metal beverage can manufacturing facilities in Europe, Brazil and the US from US-based beverage can makers Ball and Rexam for $3.42bn.
The deal is a part of Ball's effort to gain approval for its £4.43bn proposed acquisition of UK-based can manufacturer Rexam. The merger deal is planned to be completed in June.
The European Commission approved the deal under the EU Merger Regulation after Ball agreed to sell 12 production plants in the European Economic Area (EEA).
In July last year, a probe was launched by the Commission into the proposed purchase due to concerns over the possibility of the deal weakening competition in the beverage can and aluminum bottle sectors in the EEA, as Ball and Rexam are the top two can makers in the region.
Under the terms of the deal, Ardagh will acquire 10 beverage can manufacturing plants and two end plants in Europe, seven beverage can manufacturing plants and one end plant in the US, two beverage can manufacturing plants in Brazil.
The deal, which is slated for completion by the end of June 2016, also includes certain innovation and support functions in Germany, the UK, Switzerland and the US.
Ardagh chairman Paul Coulson said: "We are pleased to expand our consumer packaging business with the addition of a leading beverage can business.
"Whilst we do not currently operate in the beverage can market, the business we are acquiring is highly complementary to our existing metal and glass businesses. The acquired business has an excellent management team and strong customer relationships."
Upon completion of the merger deal, the combined Ball global metal beverage business is expected to have 75 metal beverage manufacturing facilities and joint ventures.
Image: Ball agreed to acquire UK-based can manufacturer Rexam for £4.43bn. Photo: Courtesy of Ball Corporation.
