Ball Corporation is moving forward in it plans to acquire all of the outstanding shares of Rexam in a cash and stock transaction, first announced in February 2015. The two companies have complementary metal beverage packaging product offerings and strong cultural compatibility. The combined company will have pro forma 2014 revenue of approximately $15 billion and approximately 22,500 employees across five continents.
“The combination of Ball and Rexam creates a global metal beverage packaging supplier capable of leveraging its geographic presence, innovative products and talented employees to better serve customers of all sizes across the globe; while at the same time generating significant shareholder value,” said John A. Hayes, chairman, president and chief executive officer, at the time of the initial announcement. “As our customers’ global reach and product portfolios expand and consumer packaging preferences evolve, the Ball and Rexam combination allows us to remain competitive versus other packaging substrates and responsive to our stakeholders needs for sustainable, innovative and low-cost packaging solutions.”
Conditional Regluatory Approvals
Ball Corporation received conditional regulatory clearance in Europe for its proposed acquisition of Rexam PLC in January 2016. As part of the conditional clearance, the European Commission is requiring Ball to 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. The European Commission is also requiring Ball to divest certain European innovation and support functions in Bonn, Germany, Chester, U.K. and Zurich, Switzerland.
Upon closing the proposed offer for Rexam PLC, the combined company will operate Rexam’s remaining 13 beverage can manufacturing plants and two end plants in Europe and three can plants and one end plant in Russia, as well as Ball’s Bierne, France, Belgrade, Serbia, and Lublin, Poland, manufacturing plants. In addition, Ball plans to move its European regional support office to Rexam’s Luton, U.K., location and will retain Rexam’s Tongwell, U.K., research and development center.
On Dec. 29, 2015, Ball received conditional regulatory approval in Brazil. As part of the Brazilian conditional clearance, the company 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 expects to obtain the remaining regulatory clearances to enable the proposed acquisition of Rexam PLC to close during the first half of 2016. Following closing of the transaction, Ball will remain a New York Stock Exchange listed compan headquartered in Broomfield, Colorado.