KEY POINTS:
Graeme Hart's purchase of the packaging business of US aluminium firm Alcoa will give Hart's Rank Group a strong presence in North America, says Alcoa spokesman Kevin Lowery.
Speaking to the Pittsburgh Tribune Review, Lowery said the buy fitted well with Rank's packaging assets, which include Carter Holt Harvey, Evergreen Packaging and Swiss giant SIG.
Rank is to pay US$2.7 billion ($3.5 billion) for the Alcoa packaging assets which include the Reynolds food packaging and Closure Systems brands.
Lowery said the assets could be renamed Reynolds Packaging.
He said Rank had sent affected Alcoa employees an email explaining its reasons for the purchase.
Alcoa's packaging businesses employ about 10,000 people - mainly in the US but also in Europe, South America and Australia.
The Alcoa acquisition is larger than previous Hart deals, including the $3.3 billion paid for each of Carter Holt Harvey and SIG.
Rank Group employs about 17,000 people in North America, Australasia, Europe, Asia, South America and the Middle East.
Talks are also reported with Australian packaging company Amcor about a partnership with the cardboard packaging company of Carter Holt Harvey, which would generate annual revenue of about A$1 billion.
The packaging and consumer businesses purchased from Alcoa generated revenue of about US$3.2 billion last year and an after-tax operating income of US$95 million.
