Winter Park, Florida 25/04/2016 - Ball Corp and Rexam PLC have agreed to sell select metal beverage can assets in Europe, Brazil and the United States to the Ardagh Group for approximately $3.42 billion to satisfy certain regulatory requirements in connection with their pending merger.
US-based Ball agreed in February to buy Rexam to make the world's largest can maker in transaction valued at about $6.3 billion. But to win regulatory approval, the two companies have to divest of some asset.
Ball will sell seven Rexam metal beverage can manufacturing plants and one Rexam end plant in the US; eight Ball beverage can manufacturing plants, two Ball end plants and two Rexam beverage can manufacturing plants in Europe; two Ball beverage can manufacturing plants in Brazil; and certain innovation and support functions in Bonn, Germany, Chester, UK, Zurich, Sao Paulo and Chicago and Elk Grove, Illinois, in the U.S.
The divested assets had 2015 revenues of approximately $3 billion and EBITDA of approximately $375 million, according to the release.
Luxembourg-based Ardagh operates 89 manufacturing production facilities in 21 countries with revenue of 5.2 billion euros ($5.8 billion) in 2015.
Assuming a successful completion of Ball's proposed offer for Rexam, the combined Ball global metal beverage business will operate 75 metal beverage manufacturing facilities and joint ventures, as well as various support locations. Ball expects to close its deal for Rexam by the end of June.