Amcor considering takeover of Bemis: report

UBS is eyed working with Amcor amid reports it is mulling a play for US rival Bemis.

An Amcor employee at a beverage can production facility in Melbourne.

Investment bank UBS is believed to be working for Amcor on its potential takeover of its US rival Bemis, according to sources, while Goldman Sachs may also be involved.

Following reports it was weighing a takeover of the $US4 billion target, packaging giant Amcor told the market it was “continually reviewing opportunities to improve shareholder value and, as part of that process, regularly assesses a range of strategic options”.

UBS did not comment on speculation it was working for the Melbourne-based packaging giant on the deal, but the bank is known to be close to Amcor.

Investment bank Citi is also a close ally, according to sources, but the bank is not said to be involved.

Goldman Sachs is believed to be working for either Amcor or its target, Bemis, and market watchers believe that the $18bn company may tap joint lead managers for a substantial equity raise should the prospective deal proceed.

Bemis is known to have been a target for some time for Amcor, which has widely flagged to the market that acquisitions are on its agenda.

Citing people familiar with the matter, Bloomberg reported that Amcor was working with advisers to launch a bid for Bemis, which has a market value of about $US4.3bn.

Bemis shares rose as much as 17 per cent to $US49.84 in New York overnight.

The Wisconsin-based Bemis makes plastic packaging including printed bottle labels, as well as machinery that makes packaging for liquids. It reported net sales of $US1.01bn for the second quarter.

Australian-listed Amcor (AMC) has a market valuation of about $US14.6bn.

At 3pm (AEST), Amcor shares were down 1.8 per cent to $15.425.