Amcor raises $1bn as Bemis union questions Alcan buy

Australian packaging group Amcor revealed today that it has sold AUS$1.2bn (US$1bn) in new shares to institutional investors as part of a AUS$1.6bn capital raising to fund the purchase of several parts of Alcan Packaging that was announced on Tuesday.

Meanwhile, US trade union Workers United has called on Bemis to address its concerns that the Alcan Packaging Food Americas acquisition will have a negative effect on the company.

In a letter to Bemis chief executive Henry Thiesen, Workers United president Bruce Raynor said the union was concerned over the amount of debt Bemis will incur to finance the purchase and suggested it could fall foul of competition authorities.

“What steps has Bemis taken to avoid anti-competitive practice-related problems from arising?” he asked.

Raynor also suggested integrating the two companies could prove more difficult and costly than anticipated. “We are deeply concerned that the company’s acquisition of Alcan Packaging Food Americas may be too risky and may put the firm’s future profitability in doubt.”

Global trade union UNI Graphical has expressed similar concerns about the effect of restructuring the Amcor business once the Alcan acquisition goes through. UNI Graphical head Steve Walsh expressed concern over the likely effect on workers’ jobs once a restructuring plan is put in place and said that he would be seeking meetings with Amcor “as a matter of urgency”.

In the UK, Unite is also talking to employees at Alcan and Amcor, but assistant general secretary Tony Burke said it was important to take an international perspective.

“It’s not an issue one union will be able to deal with on its own, in one country. There is bound to be some global restructuring,” he said.

The acquisitions by Bemis and Amcor bring to an end almost two years of speculation over the firms’ interest in Alcan Packaging.

Rio Tinto has been looking to sell the packaging division since it acquired Alcan in 2007. The beauty and personal care division is still up for sale.

• Rio Tinto said falling metals and mineral prices as a result of the economic downturn had led to a 55% drop in pre-tax profits for the first half of they year. Revenue also fell by 31% to $18.9bn.

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