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New Zealand's richest man Graeme Hart is in talks with Amcor about forming a partnership between Carter Holt Harvey's cardboard packaging company and the Australian packaging heavyweight, media reports say.
The joint venture, between the corrugated and paper businesses of Carter Holt Harvey and Amcor, would generate annual revenue of about A$1 billion ($1.15 billion), the Sydney Morning Herald said.
The partnership is aimed at challenging Visy. As it stands, Visy holds the biggest slice of the cardboard box market with 47 per cent.
Amcor, with less than 40 per cent, is the second largest, followed by Carter Holt, which Hart bought last year.
A deal is due to be announced within months, according to the newspaper.
Hart has long been rumoured to be interested in buying Amcor, which in recent weeks has reportedly made some executives from its cardboard box business redundant.
Amcor recently blew the whistle on a price-fixing cartel between itself and Visy, forcing Visy and owner Dick Pratt to settle with the Australian competitor regulator for a record A$36 million.
Suppliers are taking both Amcor and Visy to court for at least A$300 million in damages.
Amcor is due to brief investors next week about the business.
Since taking control of Carter Holt for $3.3 million, Hart has bought Swiss packaging leader SIG, a US paper products firm and International Paper's beverage packaging business.
- NZPA
