You are here: Home > Press Releases > CADE approves Ball’s takeover of Rexam with restrictions

Notícias

CADE approves Ball’s takeover of Rexam with restrictions

merger

The agreement signed with both companies as a condition for the transaction’s authorization includes the divestiture of plants
published: Dec 09, 2015 12:00 AM last modified: Apr 08, 2016 03:38 PM

The Administrative Council for Economic Defense – CADE approved, at the Tribunal’s judgment session of 9 December 2015, the acquisition of Rexam PLC by Ball Corporation. The approval of the merger file (Merger File No. 08700.006567/2015-07) was, however, conditioned to the adoption of structural and behavioural measures settled in a Merger Control Agreement (Acordo de Controle de Concentrações – ACC). 

According to the reporting Commissioner for the case, Gilvandro Araújo, the merger would constitute the tie-up of the two biggest producers of metal cans for beverages in Brazil. In the post-merger scenario, the market shares of both companies would be significant in all country regions.

In order to repeal competition concerns, the transaction´s approval was conditioned to the divestiture of plants and tangible and intangible assets related to them. The ACC also settled the transfer of current contracts related to the unities to be sold to the eventual plants’ buyer. Furthermore, Ball and Rexam will have to sign contracts for can ends supply with the assets buyer. 

The plants’ buyer must be a sole agent and requires CADE’s Tribunal approval. The units to be sold are confidential.