South African packaging company Nampak has announced plans to acquire Zimbabwe-based paper products manufacturer Hunyani.
The company plans to merge Hunyani with its two Zimbabwe businesses CarnaudMetalbox Zimbabwe and MegaPak Zimbabwe into one business entity named Nampak Zimbabwe.
For the six months ending 30 April, Hunyani posted a $219 684 loss weighed down by a revenue drop. At that time, its revenues stood at $18.9m, down from $20.9m in 2013.
According to Hunyani, the deal needs to get approval from shareholders at an extraordinary general meeting.
MegaPak was founded in 1993 as a joint venture between Delta of Zimbabwe and Nampak. It offers technologies including injection moulding, stretch blow moulding, blow moulding and rotational moulding technologies. Delta owns 51% in MegaPak and Nampak 49%.
Plastic bottles manufacturer CarnaudMetalbox supplies metal cans, crowns and aerosols in Zimbabwe and can produce around three million food cans a month.
Nampak manufactures packaging for metal, glass, paper and plastic. It reported poor consumer demand and economic conditions in its Zimbabwe operations in its March financial results.