packaging group amcor aims to wrap up rival bemis for $5.25 billion - pet film for food packaging
Amcor Co. , Ltd. , the world's largest listed packaging company (AMC. AX)
A sudden attack on the United States on MondayS.
Comparable to Bemis (BMS. N)in a $5. 25 billion all-
As packaging companies rush to acquire growth through acquisitions, the stock deal follows.
Trade to Australia-
Some new products are listed, especially food
The packaging film known to Bemis, as well as deeper entry into the Americas as changing customer preferences are shaking the industry.
Prior to the transaction details being reported, Bemis shareholders received a premium of 25% of the company's closing price on Thursday.
Amcor will now have a bigger foothold in the US, which will help it manage the changing packaging industry needs to meet changing consumer preferences such as snacks and environmental issues.
Amcor chief executive officer Ron Delia said in an interview with Reuters on Monday that the merger is unlikely to lead to divestiture.
"We are very happy with our current portfolio, and this Bemis transaction only supports this portfolio," he said . ".
"It is perfect for our flexible packaging footprint.
The two companies started negotiations for the first time in January, Dilia said.
According to the agreement, Amcor will issue 5.
Bemis shares 1 share and shares are worth $57.
At £ 75 per share, Bemis shareholders will eventually receive 29% of the combined company, which will be listed in both Sydney and New York.
After the deal was made public, the price was 12% higher than bemis's share price on Friday.
The stock price of Bemis fell by 0.
$ 42%, $51.
A shares traded on the New York Stock Exchange earlier Monday afternoon.
"I think this is a reasonable" way out "for a company that has been struggling "(Bemis).
I think Amcor has made great progress in technology.
Mark Wilder, capital market analyst at investment bank BMO, said.
CEO William F.
Shareholders will achieve a "huge premium", Austin said ". . .
And the opportunity to continue to participate in the "upside potential" of larger companies. WRAP UP SHAKE-
The acquisition is the 12 th-
According to Thomson Reuters, the largest overseas M & A deal for listed companies in Australia, and 158-year-
An old company that started with a paper mill.
It's also 12 deals in the past two years as it acquired growth around the world.
Bemis, founded as a sack maker, has been facing tough times as changing consumer demand subverted an industry with moderate but reliable growth rates.
In the past few months, Britain
Packaging group based on DS Smith Plc (SMDS. L)offered 1.
9 billion euros ($2. 2 billion)
The acquisition of Spanish rival European Pike.
MC, while Smurfit Kappa in Ireland (SKG. I)
Agreed to acquire Reparenco, a Dutch paper and recycling company.
"It will be a big challenge.
The competition is so fierce, "Chip Dillon, an analyst at the packaging company of Vertical Research Partners, said in an interview.
He suggested that Amcor could start by reducing some B emissions.
Amcor said it would maintain a "critical position" in Wisconsin, where Bemis headquarters is located ".
The transaction is subject to regulatory and shareholder approval from both companies and is expected to be completed by 2019.