Amcor restructure before Alcan deal

25 January 2010 | 03:36 Code : 19719 Geoscience events
Packaging giant Amcor Ltd has flagged a shake-up to its business structure....

Packaging giant Amcor Ltd has flagged a shake-up to its business structure, as it prepares to acquire the Alcan Packaging operations.Amcor will combine its Flexibles Food and Flexibles Healthcare business units with Alcan Packaging’s Pharmaceutical and Food Europe divisions.The combined group will be called Amcor Flexibles - Europe and Americas and will be headed by Peter Brues, the current head of the company’s Flexibles Healthcare business.Amcor will also add a new division called Amcor Flexibles - Asia Pacific, led by the president of Alcan Packaging’s Asia Pacific business unit, Ralf Wunderlich.The move comes as the company prepares for approvals for its planned buy-out of the Alcan Packaging business from Rio Tinto Ltd, for $US2.025 billion ($A2.21 billion).Rio Tinto acquired the business when it bought Canadian Alcan for $US38 billion near the height of the commodity boom in October 2007.The mining giant, which became mired in debt following the deal, was seeking to sell the Alcan Packaging division because it was considered a non-core operation.The purchase of Alcan Packaging by Amcor remains subject to regulatory reviews in Europe and the United States and consultations with the European Works Council, Amcor said in a statement.’The new structure will not be implemented until all relevant approvals are received and the transaction is closed,’ it told the stock exchange on Friday.A spokesman for the company said the moves were needed because the purchase of Alcan Packaging increased significantly the flexibles and tobacco packaging elements of the business.’Two businesses are being combined, and then there is a new business group called Amcor Flexibles Asia Pacific,’ he said.

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