Drinks can maker Ball Corp. said it along with British rival Rexam agreed to sell some assets to Luxembourg-based packaging maker Ardagh Group for about $3.42 billion to meet antitrust regulations ahead of their planned merger.
The deal would include the sale of 22 Ball and Rexam manufacturing plants across Europe, Brazil and the United States, the three locations where Ball has the biggest overlap with Rexam, the company said on Monday.
Ball will also sell certain innovation and support functions at these three locations, putting it on track to close the Rexam deal by the end of June.
U.S.-based Ball's planned 4.4 billion pound ($6.35 billion)takeover of Britain's Rexam would merge the world's two largest beverage can makers by volume, which supply Coca-Cola and Anheuser-Busch InBev, and should improve efficiency and cut costs.
After the completion of the deal, which triggered concerns in the European Commission that it would drive up prices for companies and consumers, Ball will operate 75 metal beverage manufacturing facilities and joint ventures in various locations.
Reuters had reported in February that Ball and Rexam had begun the process of shedding assets.
Ball Corp. and Rexam were said to be in talks with Blackstone Group, Apollo Global Management, CVC Capital Partners, Onex Corp., and Madison Dearborn Partners, Silgan Holdings, and Ardagh, for the sale of certain assets.
Source : cnbc.com