Brewer supports Rexam purchase

Rexam, a leading consumer packaging company, has reached an agreement with Belgian brewing giant Interbrew to acquire German glass container manufacturer Nienburger Glas.

Rexam has made a £68 million (€107.5m) bid, including net borrowings, for the German company and will assume £8 million of pension - but the acquisition was supported by a supply agreement with Interbrew.

Commenting on the announcement, Rolf Börjesson, Rexam's chiefexecutive, said: "We have consistently stated that the German glassindustry needs consolidating and that Rexam could take theopportunity to play a role as a consolidator.​

The integration of ourglass operations with Nienburger's will create cost saving synergiesand also reinforce our long term relationship with Interbrew, one ofour principal beverage customers."​

The company added that the acquisition will exceed Rexam's​ cost of capital within the first fullyear of ownership and will provide some £3 million of synergiesin the following two years. The transaction is subject to regulatory approval by relevantcompetition authorities.

Nienburger Glas hasfour sites across Germany and employs 1,270 people.