Market Overview

Ball Corporation, Rexam Announces $3.42 Billion Asset Sale To Appease Regulators


Shares of Ball Corporation (NYSE: BLL), a supplier of metal packaging to the beverage, food and other industries, were trading higher by more than 1 percent early Monday morning after the company announced it plans on selling some of its assets to Ardagh Group.

Ball's move to divest some of its assets is a step toward gaining regulatory approval for its pending $6.35 billion acquisition of British-based Rexam Plc – whose assets are also included in the transaction.

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Ball and Rexam will sell approximately 20 percent of their combined can making or producing plants to Ardagh Group for $3.42 billion. Also included in the transaction is support locations and functions in Europe, Brazil and the United States.

Ball also said in its press release it expects its merger with Rexam to generate net annual cost synergies in excess of $300 million in the third-financial year of operations. The guidance represents an improvement from original acquisition announcement, which called on the combined entity to generate synergies of approximately $300 million.

Ball added that the combined entity will oversee 75 metal beverage manufacturing facilities and various support locations across the world. The company also committed to remaining domiciled in the United States, and shares will continue trading on the New York Stock Exchange.

Posted-In: Ardagh Group Ball Metal PackagingNews Guidance Asset Sales M&A Trading Ideas


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