Ball gains U.S. regulatory approval of Rexam acquisition

BROOMFIELD — The U.S. Federal Trade Commission announced on Tuesday that it has approved Broomfield-based aluminum can manufacturer Ball Corp.’s $6.64 billion acquisition of United-Kingdom-based rival Rexam, with the condition that Ball divest eight U.S. manufacturing plants.

The approval paves the way for Ball to close soon on the merger of the world’s two largest makers of aluminum beverage cans.

In a statement Tuesday, FTC officials said the merger would “substantially lessen competition” for standard 12-ounce cans in three U.S. markets, the South, Midwest and the West, and do the same for specialty aluminum cans nationwide.

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As part of the approval, Luxembourg-based Ardagh Group will acquire the eight can plants in the United States. That’s in addition to 12 Ball and Rexam plants in Europe and two in Brazil that Ardagh will acquire. Ball received final regulatory approvals in Europe and Brazil earlier this month. In all, Reuters reports that Ardagh will pay $3.42 billion for the Ball and Rexam assets to satisfy regulators.

Under terms of the FTC approval, Ardagh will acquire Rexam can plants in Fairfield, Calif.; Chicago; Whitehouse, Ohio; Fremont, Ohio; Winston-Salem, N.C.; Bishopville, S.C.; and Olive Branch, Miss., as well as a can end plant in Valparaiso, Ind. The company will also acquire Rexam’s U.S. headquarters in Chicago and a technical center in Elk Grove, Ill.

Once the acquisition of Rexam closes, Ball will operate its 16 existing North American metal beverage packaging plants and the Rocky Mountain Metal Container joint venture in Golden. It will also gain Rexam can plants in Phoenix; Chatsworth, Calif.; St. Paul, Minn.; Longview, Texas; Kent Wash.; and Queretaro, Mexico, as well as an end manufacturing plant in Birmingham, Ala., and joint ventures in Guatemala and Panama.