Ball Corporation has signed an agreement with its partners to acquire the remaining 39.9% stake in the Latapack-Ball Embalagens joint venture (JV) in Brazil for an undisclosed amount.
The acquisition turns Ball into the sole owner for the metal beverage packaging JV, in which the firm had increased its stake to 60% in October 2010.
The deal entitles the firm to a 100% stake in the company in exchange for six million Ball common shares.
The business unit is expected to help the company in boosting its Brazilian business portfolio, by simplifying and streamlining its decision-making process in the country, as well as for the broader Ball metal beverage business.
Ball Corporation chairman, president and CEO John A Hayes said: "By contributing their interest into a larger, global opportunity, our partners in Brazil will continue to participate in our future value creation, as we better serve our dynamic customer base through increased supply chain efficiencies and optimisation of Ball's best practices to ensure that beverage cans are economically viable for years to come."
Delivering cans and can ends to metal beverage packaging manufacturing units in Tres Rios, Jacarei and Salvador, the JV had offered entry to Ball in 1995.
The deal is awaiting customary approvals and is expected to be completed within the first quarter of 2016.
The firm intends to work with Brazil's Tribunal of Administrative Council for Economic Defence to solve any remaining competition issues for its proposed offer for Rexam.
Image: Ball had increased its stake in the can producing JV for metal beverage packaging industry to 60% in 2010. Photo: courtesy of Salvatore Vuono via freedigitalphotos.net.