Ball Corporation today announced that it has reached an agreement with its joint venture partners in Brazil to acquire their remaining 39.9 percent minority interest in the Latapack-Ball beverage can business in exchange for the issuance of 6 million Ball common shares.
The joint venture, established in 1995, supplies cans and ends to the Brazilian market from four manufacturing facilities. The local business has grown over the years as local customers' packaging mix continues to shift to metal beverage cans.
"Latapack-Ball is one of the most successful joint ventures in our company's history, and this exchange allows us to further leverage, simplify and streamline our business and business decision-making in Brazil, as well as across the broader Ball metal beverage business," said John A. Hayes, chairman, president and CEO. "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 optimization of Ball best practices to ensure that beverage cans are economically viable for years to come."
The transaction is subject to customary approvals and is expected to close no later than the first quarter of 2016. Ball looks forward to working directly and efficiently with Brazil's Tribunal of Administrative Council for Economic Defense to address any remaining competition concerns regarding Ball's proposed offer for Rexam PLC.