Ball’s Offer For Rexam PLC Receives Conditional Regulatory Clearance In Europe; Required Divestitures In Brazil Disclosed
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…
Ball Corporation announced that the European Commission has granted conditional regulatory clearance in Europe of its proposed acquisition of Rexam PLC.
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 European beverage can manufacturing plants and two end plants, as well as three Rexam can plants and one end plant in Russia, and 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 announced receipt of 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 company domiciled in the U.S. and headquartered in Broomfield, Colorado.