Jul 19, 2007

Speculation Over Potential Buyers for Alcan’s Packaging Unit Continues

Macquarie Equities says packaging giant Amcor is an unlikely purchaser of Alcan's packaging division, following the announcement that it would be sold as part of Rio Tinto's acquisition of the company last week.


Melbourne-based Rio Tinto has placed a $38.1bn bid for Canadian aluminium company Alcan, in a deal that could create the world's largest aluminium company.


The proposed takeover has led packaging industry analysts to speculate on how the division would be splintered in order to attract more buyers, as Rio Tinto focuses on the more lucrative aluminium activities within the business.


Last week Alcan confirmed the business would not be splintered and would be sold as a whole.


However, in a research note brokerage firm Maquarie says although Alcan is Amcor's major competitor in flexible and tobacco packaging in Europe, combining the two companies is likely to attract the attention of competition regulators. Amcor has a 15% market share in Europe, and Alcan has a 20% share.


Maquarie also notes that for the past two years Amcor has been in a 'divestment phase', adopting a back-to-basics approach – improving returns on existing assets.


It says Bemis, the largest flexibles company in the US, is a more likely contender as it only has a small presence in Europe.
Source: packaging-technology

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