Can maker Rexam in takeover talks with U.S. rival Ball

U.S. packaging group Ball Corporation wants to buy its UK competitor Rexam, a move that would combine two of the world’s biggest can makers.

On 5 February 2015 it was disclosed that the two companies are discussing a share and cash offer that values Rexam at more than GBP 4 billion (USD 6 billion). Ball’s market capitalization is around USD 10 billion.

The offer will be two thirds in cash and one third in new Ball shares, Rexam said.

The world’s top three can makers Rexam, Ball and U.S. Crown Holdings, account for more than 60 percent of global beverage can volumes, and close to 90 percent in Europe, North and South America, according to Rexam’s website.

A combination of Rexam and Ball would create regulatory issues due to their high market shares in territories such as the U.S., Europe and Brazil, but these obstacles should be surmountable, market observers say.

Rexam, which has around 8,000 employees, is focused on drinks cans after selling its health-care containers and closures business to Berry Plastics Group Inc. last year for USD 135 million.