Rexam's Profits Flat Ahead Of Ball Corporation Takeover
UK drinks can maker Rexam announced a slight increase in underlying pre-tax profits of 1 per cent to £362 million in 2015, ahead of its merger with US packaging giant Ball Corporation.
The boost in profits came after a strong sales performance in Europe, Africa, the Middle East and Asia. Including restructuring costs retaliate to the upcoming merger, however, actual pre-tax profits fell by 27 per cent to £250 million.
The proposed £4.43 billion merger is expected to be completed in the first half of this year after the European Commission approved the deal with some competition allowances.
Graham Chipchase, Rexam's chief executive said the deal with Ball will give the the companies "strong opportunity to create a best in class global service".
"Rexam's proposed combination with Ball will create a global packaging leader ... able to respond to changes in the industry environment in a faster and more effective manner," said Chipcase.
The combined companies would hire 22,5000 staff and generate an annual turnover of £10 billion, supplying cans to top brands such as Coca-Cola and Heineken.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.