By Angela Chen
Ball Corp. said the U.S. Federal Trade Commission has requested
additional information regarding Ball's GBP4.4 billion ($6.7
billion) deal to buy Rexam PLC.
Ball said this second request is a standard part of the
regulatory process. Broomfield, Colorado-based Ball is a
135-year-old company famous for its glass canning jars. Can-maker
Rexam is based in the U.K.
Shares, which have been up about 5% this year through Monday's
close, fell 0.8% in morning trading.
The deal announced in February, if approved, would create one of
the world's biggest consumer-packaging suppliers. Ball's purchase
would combine two of the world's largest can makers, which together
with Philadelphia-based Crown Holdings Inc. account for more than
60% of global beverage-can volumes and close to 90% in Europe and
the Americas, according to Rexam's website. Rexam's customers
include Coca-Cola Co. and PepsiCo Inc.
The combination of packaging companies to achieve global scale
follows a similar trend for beer groups, such as SABMiller PLC and
Anheuser-Busch InBev NV, as well as soft-drink makers. In November,
Coke and SABMiller agreed to combine their soft-drink-bottling
operations in Southern and Eastern Africa.
The deal is expected to close in the first half of 2016.
Write to Angela Chen at angela.chen@dowjones.com
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