Global packaging giant Amcor Limited (ASX: AMC) has announced some further news about its Bemis acquisition.
Amcor is a global packaging company. It develops and produces flexible packaging, rigid containers, specialty cartons, closures and services for food, beverage, pharmaceutical, medical device, home and personal care and other products.
Here’s what Amcor announced about Bemis
Amcor said that it and acquisition target Bemis have moved one step closer towards completing the all-stock transaction.
The companies have filed shareholder documentation and have also finalised Board of Director and Senior Leadership appointments.
Amcor reminded shareholders that substantial value is expected to be created with US$180 million of pre-tax annual net cost synergies and a stronger financial position going forward including higher profit margins, better cashflow and the potential for stronger growth.
The company also said it intends to maintain its progressive and competitive dividend over time, as well as having an investment grade balance sheet with capacity for more investments or share buy backs.
Amcor CEO Ron Delia commented on the potential of the deal, “As we approach the closing of the transaction, the opportunities to further strengthen our industry leading value proposition for customers, employees and the environment and to create value for shareholders are even clearer.”
Amcor is making this deal sound exciting, although the share price hasn’t done much over the past few years. I would much rather wait and see if the synergies are starting to come through before buying shares.
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