Amcor suspends shares ahead of imminent Alcan announcement

The Australian firm’s shares were placed in what is known as a trading halt, the company said, pending the outcome of late stage negotiations regarding a possible acquisition.

Amcor is reported to be ready to pay AUS$2.4bn (US$2bn) for some of the assets of Alcan Packaging. This morning’s suspension of trading comes just over a month after Bemis acquired Alcan Packaging Food Americas for US$1.2bn on 6 July.

Rio Tinto, the world’s third-largest mining group which owns Alcan Packaging, declined to comment on the deal this morning. Amcor was not available for any further comment.

Last week, it was reported Amcor was close to finalising a US$1.2bn loan to pay for the assets and that a deal would be completed ahead of the firm’s full-year results that will be published on Wednesday (19 August).

Nicholas Mockett, partner at Moorgate Capital, said Alcan Packaging looked to be a good fit for the company, although suggested Amcor could rationalise the acquired operations once a deal is completed.

“Pretty much any part of Alcan in Europe would fit with Amcor, as it’s flexible food and healthcare and tobacco cartons. There may be some piece meal disposals and rationalisation of sites,” he said.

Concern has been expressed previously that EU competition law could be a major hurdle to the deal going through.

Amcor and Bemis have been the two names regularly linked to buying some of the Alcan packaging division since mining giant Rio Tinto acquired the Canadian firm in July 2007 and immediately put the packaging operations up for sale.

Away from the expected Alcan acquisition, Amcor is currently embroiled in legal action over an alleged price-fixing cartel with rival Visy between 2000 and 2004. Some 20,000 clients of both firms have joined a class action against them, it emerged last week.

The group settled out of court with Cadbury’s over claims of price-fixing for boxes, cans and PET products. The confectionary giant had been set to sue Amcor for AUS$236m (£116m).

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