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Ball buying rival can maker Rexam in $6.64B deal

BROOMFIELD, Colo. — Ball Corp. is buying metal beverage can maker Rexam PLC in a cash-and-stock deal valued at about $6.64 billion in order to stay competitive against other packaging companies.

Rexam shareholders will receive $628.56 in cash and 0.04568 new Ball shares for each Rexam share they own. The transaction values Rexam at $942.36 per share. The companies put the deal’s total value at $8.4 billion, including the assumption of debt.

Rexam stockholders will own about 19 percent of Ball’s outstanding shares once the deal closes.

The combined company will have 2014 revenue of about $15 billion and 22,500 workers on five continents. It will be based in the U.S.

Rexam’s U.S. operations are based in Chicago. The company employs more than 250 people between its Chicago regional headquarters office and a technical center in Elk Grove Village. The company’s North and Central America region comprises 17 plants and about 2,000 employees.

Overall, Rexam has 55 can making plants in more than 20 countries and employs about 8,000 people.

Ball Corp., which is based in Broomfield, Colorado, and London-based Rexam project $300 million in savings by 2018.

The companies said Thursday they expect to receive the necessary clearances for the deal in the first half of 2016. The deal still needs approval from both companies’ shareholders.