Ball Corporation has agreed to acquire British beverage can maker Rexam for approximately £4.3bn.
Both the companies have entered into an agreement to this effect. Ball has agreed to pay £6.10 per share to Rexam.
The deal will merge Ball and Rexam in order to create a metal beverage packaging giant that will be better positioned to serve its combined customer base, through shared best practices, supply chain efficiency, manufacturing excellence and increased product innovation.
The new company is expected to generate significant shareholder value and would be capable of leveraging its geographic presence to better serve customers of all sizes in all regions across the globe.
It is estimated that the combined company will generate around $15bn in revenues. The new firm will serve packaging requirements in beverage, food, personal care, household product, and aerospace industries.
It will cater to customers across North America, Latin America and Europe, as well as key developing regions including South America, Asia, and the Middle East.
Rexam chairman Stuart Chambers said: "In recent years Rexam’s management team has led a transformation of the Group, returning approximately £1.5 billion of cash to shareholders since 2010, and creating a focused beverage can maker with a promising future.
"Notwithstanding that, the Rexam Board believes that the proposed combination with Ball will bring an enhanced ability to serve the demands of our increasingly global customers and represents a compelling opportunity for our shareholders."
Rexam is headquartered in the UK and employs close to 8,000 people. It offers beverage cans packaging solutions comprising of aluminum and steel cans for carbonated soft drinks, beer, and energy drinks.
The firm has a presence in Europe, Africa, the Middle East, Asia, North America, and South America, and operates 55 plants across 20 countries. It generated £3,943m in net sales during 2013.
Image: Rexam operates 55 plants across 20 countries. Photo: courtesy of Rexam PLC.