Converting

Amcor is to sell its European PET business to La Seda de Barcelona for an estimated £287m (EUR425m), it was announced today, confirming two months of speculation.

On 22 June, shareholders in Spanish plastics producer La Seda approved a £300m capital hike to pay for expansion and acquisition plans.

Australian-owned Amcor expects the sale to be completed in the next three months, and will reinvest the proceeds into "growth market segments" and "strengthening existing market positions".

As well as selling the PET plants, it is also looking to restructure its European flexible packaging operations, which include 11 plants in the UK.

For the year to 30 June 2007, Amcor's PET production plants recorded estimated revenues of £368m.