Ball Says U.S. Seeks More Information on Rexam Acquisition

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 [e-mail]

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