The world’s second biggest drinks can manufacturer – the UK’s Rexam – has been approached by the biggest – Ball Corporation of the US – about a possible £4.3bn takeover.
Rexam makes about 62bn drinks cans a year for brands such as Coca-Cola, Heineken and Red Bull. Its shares jumped 24% to 557p after it revealed it was in talks with the American packaging supplier. Ball is considering a cash and shares offer valuing Rexam at about £4.3bn or 610p a share. The sum would be paid two-thirds in cash and one-third in new Ball shares.
“Discussions on other matters are continuing and there can be no certainty any formal offer will be forthcoming, or as to the terms of any offer,” Rexam said in a statement on Thursday. “A further announcement will be made when appropriate.”
The two companies overlap in the US and some parts of Europe, but a deal would give Rexam access to China that it does not currently have.
Ball has been given a “put up or shut up” deadline of 5pm on 5 March to either announce a firm intention to make an offer or walk away.
Registered in London, Rexam has 55 plants in 20 countries and employs about 8,000 people. Ball Corporation is based in Broomfield, Colorado, and employs more than 14,500.
