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Ball and Rexam to sell assets to Ireland's Ardagh Group

Mon, 25th Apr 2016 08:07

(ShareCast News) - Ball Corp. and Rexam agreed to divest assets to Ireland's Ardagh Group worth $3.42bn in a bid to clinch regulatory approval for their merger.The two companies, which unveiled their intention to merge and create the world's largest manufacturer of food and beverage cans on 19 February, announced they would sell the assets at a multiple of roughly 9.1 times earnings before interest, taxes, depreciation and amortisation of $375m.In parallel, Ardagh announced it had launched a $2.85bn bond issue to finance its purchases.US-based Ball agreed to sell 17 factories in the US, Europe and Brazil, together with other installations with combined annual sales of $3bn in 2015 to clinch regulatory clearance from competition authorities in Brussels.Ball and Rexam were among the largest suppliers to the likes of Coca Cola and Anheuser Busch-Inbev.Private equity outfits Apollo Global Management, Blackstone Group LP and Madison Dearborn Partners were understood to have also tabled bids for the assets.There were question marks around whether debt levels at Ardagh, which pulled an initial public offering of its cans unit last year, might prove too high a hurdle for the company to overcome.Among the assets included in Monday's announcement were eight Rexam manufacturing plants located in the US and another 12 properties in Europe and two of Ball's manufacturing plants in Brazil together with certain innovation and support centres in Germany, the UK, Switzerland, Brazil and the US.That would leave the combined company operating 75 metal beverage can manufacturing facilities around the world.Ball expects annual net cost synergies in excess of $300m to accrue to the combined firm by the third financial year after their tie-up.The bulk of those savings, 40.0%, are expected to result from optimising global sourcing through standardisation and greater purchasing volumes. A further 30.0% would come from a reduction in general and administrative expenses.As of 08:58 shares in Rexam were 0.55% higher to 639p.
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Trifast appoints former Essentra packaging chief Iain Percival as CEO

(Alliance News) - Trifast PLC on Friday said it has appointed former Essentra PLC packaging chief executive Iain Percival as its new chief executive officer.

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29 Jun 2016 10:36

Rexam Says All Approvals For Takeover By Ball Now Secured (ALLISS)

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28 Jun 2016 18:41

UPDATE 1-Ball wins conditional U.S. approval to buy Rexam

(Adds comment from Ball, background on the deal, divestiture) By Diane Bartz WASHINGTON, June 28 (Reuters) - Ball Corp and Rexam Plc, the world's two largest beverage can makers, have won U.S. antitrust approval to merge on condition that they sell eight aluminum can plants in the Uni

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22 Jun 2016 11:05

DIRECTOR DEALINGS: Incoming Chemring Chairman Buys First Shares

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21 Jun 2016 12:13

EU mergers and takeovers (June 21)

BRUSSELS, June 21 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- Private equity firms the Carlyle Group and Crestview Advisors to jointly acquire U.S. sports and entertainment event

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15 Jun 2016 15:13

UK Shareholder Meetings Calendar - Next 7 Days

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10 Jun 2016 15:08

UK Shareholder Meetings Calendar - Next 7 Days

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23 May 2016 11:15

EU mergers and takeovers (May 23)

BRUSSELS, May 23 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- Investment fund Apollo Management to acquire Portuguese insurer Acoreana Seguros (approved May 20) NEW LISTINGS

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20 May 2016 10:48

EU mergers and takeovers (May 20)

BRUSSELS, May 20 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- U.S. private equity firm Starwood Capital Group and Banco Sabadell to set up a joint venture to invest in hotels(appr

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29 Apr 2016 16:18

UPDATE 1-Ardagh draws US$20bn crowd for junk bond sale

(Updates throughout) By Davide Scigliuzzo NEW YORK, April 29 (IFR) - Investors on both sides of the Atlantic clamored for Ardagh's US$4.5bn bond sale this week, hoping that the packaging company's latest acquisition will finally pave the way for an IPO. Ardagh received around US

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29 Apr 2016 15:00

Dividends Calendar - Week Ahead

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29 Apr 2016 14:04

Books on Ardagh high-yield bond reach US$20bn: sources

By Davide Scigliuzzo NEW YORK, April 29 (IFR) - Investors have piled US$20bn of orders into Ardagh's US$4.5bn dual-currency high-yield bond offering, two sources familiar with the situation told IFR on Friday. The packaging company is raising funds in euros and US dollars from a five-

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26 Apr 2016 15:43

Tuesday newspaper share tips: Vodafone, Rexam

(ShareCast News) - Vodafone´s upcoming full-year figures should dispel investors´ doubts about the sustainability of its dividend policy and the high rating accorded to its shares, The Daily Telegraph´s Questor team said. Some observers fret that the shares current price-to-earnings multiple of 40 t

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25 Apr 2016 05:32

Ball Agrees To Sell Assets To Secure Approval For Rexam Deal

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