Global packaging business Amcor Limited (ASX: AMC) has entered into a trading halt as it plans to buy Bemis Company for $7 billion.

Amcor’s ASX-listed shares entered a trading halt Monday morning, with the Australian Financial Review reporting Amcor will fund the deal using shares issued in the US.

Bemis operates 57 packaging plants in 12 countries but it is predominately based in the United States.

The company has customers in the food, healthcare and consumer goods sectors, including foil lids for yoghurt pots, flexible plastic pouches for sauces and soups, and printed plastic wrappers for cheese.

About 70% of Bemis’ sales revenue comes from the US and it has a workforce of around 16,000.

Amcor said that its ASX shares will remain in a trading halt until it announces the acquisition to the market or until 8 August 2018.

The Amcor share price has risen by 7.3% over the past month with trade war tariff worries somewhat subsiding.

Investors will be hoping that this deal can help grow Amcor’s profit in the upcoming full-year result. In the half-year report, it revealed that net profit had increased by 6.8%.

More to come.