Amcor prepares for life after Alcan takeover

11-Dec-2009 - Last updated on 11-Dec-2009 at 11:05 GMT

Related tags European commission Management European union

Amcor has unveiled its proposed management shake up in preparation for the $2.025bn takeover of Alcan – three days before the European Commission is due to deliver its verdict on the deal.

The move by the Australian packaging giant appears to indicate confidence that the EC is preparing to give its approval to the acquisition – although a company statement stressed the buyout was still subject to regulatory reviews in both Europe and the United States.

The announcement by Amcor outlines the new organisational and senior management structures in the wake of the takeover of Alcan with the formations of seven major business units.

Restructuring

Included in the restructure would be Amcor Flexible - Europe and America- to be headed by Peter Brues. This would combine the current Amcor Flexibles Food and Flexibles Healthcare businesses with the Alcan Packaging Global Pharmaceutical and Food Europe businesses.

The newly formed Rigid Plastics division would consist of what was previously Amcor PET Packaging. It would be made up of Amcor PET, Bericap closures - North America and Alcan Packaging Pharma Plastics (Rigids).

Amcor Australasia will continue to be led by Nigel Garrard although the takeover would see the creation of a new flexible packing business for Asia. The other units would Amcor Tobacco Packaging, Amcor Sunclipse and AMVIG.

Ken MacKenzie, Amcor managing director and CEO said: “The most important task in bringing the two organisations together is creating a strong management team to lead the company.”

The company said the new structure would not be introduced until all relevant approvals were in place and the transaction is closed.

In October, MacKenzie said should the acquisition be approved, Europe would account for 35 per cent of the new company’s sales – underlining how crucial EU approval on Monday is to Amcor’s long-term global vision. He added that Amcor expected to make savings reaching A$250m following the takeover through plant closures, overhead reductions and improved procurement.