Rexam in 930m cash deal to buy Owens-Illinois plastics

To help finance the acquisition, Rexam is selling 9.9 per cent of its existing share capital; it also plans to raise £337m ($671.2m) through a bond issue.

Rexam believes this acquisition will help it win a share of the £2bn ($4bn) US medicine packaging market, which is expanding by seven per cent annually as an ageing and healthcare-conscious population uses more medicines.

"This transaction is fully in line with Rexam's strategy to expand our position in core markets," said Rexam chief executive Leslie Van de Walle.

"It gives us meaningful scale in plastics, leading market positions in core growth markets and is anticipated to create significant value through synergies and cross-selling opportunities."

O-I, whose customers include Pfizer, Bausch & Lomb, Bristol Myers Squibb, had revenue of £388m ($772m) last year. It has 18 plastics plants, 13 of which are in the US and the rest in Mexico, Brazil,

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