Rexam buys majority stake in Saudi beverage cans maker



REUTERS

Published — Thursday 13 February 2014

Last update 13 February 2014 10:37 pm

| نسخة PDF Print News | A A

JEDDAH: Beverage cans maker Rexam said it bought a 51 percent stake in Saudi Arabia’s United Arab Can Manufacturing Ltd, a supplier to The Coca-Cola Co, for $122 million as part of its strategy to expand in emerging markets.
Rexam, which makes cans for Coca-Cola, PepsiCo. Inc. and Heineken, said UAC’s plant in Dammam has an annual capacity of 1.8 billion cans.
UAC had earnings before interest, taxes, depreciation and amortization of about $29 million in 2012, London-based Rexam said.
“Growth prospects for the beverage can in the Middle East are attractive,” Rexam CEO Graham Chipchase said.
The deal is expected to close in the third quarter of 2014.
Rexam, which set up an office in Dubai last year to focus on Africa, the Middle East and Asia, said in November that it expected emerging markets such as Brazil and India to perform well in 2014.
UAC’s shareholders include Olayan Financing Company, Aujan Industries Co, The Coca-Cola Bottling Company of Saudi Arabia and Al-Jabr Trading Company.
Rexam recently sold the bulk of its health care packaging business to Montagu Private Equity for $805 million in cash to focus on making beverage cans.
Rexam is due to report its full-year results on Feb. 20.
Shares in the company were up marginally at 511 pence at 1510 GMT on the London Stock Exchange.

What's happening around Saudi Arabia

JEDDAH: A small fire broke out on the roof of the Grand Mosque on Monday morning, causing minor injuries to five people, including members of the Civil Defense, one security officer and three workers. The fire broke out at about 2 a.m. and covered an...
JEDDAH: The director general of the Saudi Industrial Property Authority, Saleh Rasheed, has said that Sadeer Industrial City, which is regarded as one of the largest industrial cities in the Kingdom, possesses great capabilities that sets it apart as...
DAMMAM: Cheap and out of date cosmetics are causing serious health problems in the Kingdom, including skin diseases, hair loss and cancer, local doctors say.These products are often manufactured incorrectly or contain harmful fats, the doctors were q...
JEDDAH: Several young Saudis have started filming Jeddah’s historic district using cameras mounted on drones to gather professional 3D footage that can be used to build models and create virtual tours.Bandar Al-Mutlaq, owner of the Arab Foundation, w...
RIYADH: The Saudi capital is fully geared for this year’s Eid Al-Fitr celebrations that include an exciting bouquet of entertainment, heritage, sports, artistic and theatrical events.The annual Muslim festivities being organized here by the Riyadh mu...
JEDDAH: As part of its growing supervisory and investigative status, Riyadh Health Department’s forensics center examined 632 cases over the past eight months involving suspected murder, rape and abuse of women and children.Khaled bin Muhammad Hassan...
RIYADH: The Syrian Expatriates Medical Association (SEMA) expressed its thanks on Monday to Saudi organizations and individuals for donating to the campaign to help Syrians affected by the ongoing conflict.SEMA has 1,300 members in Syria and other co...
RIYADH: Inclusion of the Hail rock art in the UNESCO World Heritage List is proof of the Kingdom’s status and cultural profoundness, said the Saudi Commission for Tourism and National Heritage (SCTNH) on Monday.Reacting to the announcement of the fou...
JEDDAH: The Yemeni community has asked the Saudi government to extend the rectification process, which ends Tuesday, claiming that there are many thousands still seeking to get proper identification documents to qualify for work visas in the Kingdom....
JEDDAH: The Ministry of Municipal and Rural Affairs has set up 343 electoral constituencies for the Dec. 12 municipal council elections.This was done on the orders of Abdullatif Al-Sheikh, the minister and head of the General Committee for the Munici...
JEDDAH: Efforts are under way to electronically handle all Haj-related works to achieve speed and accuracy, as well as reduce costs an bring in transparency, Haj Minister Bandar Al-Hajjar has said.Speaking at a workshop in Jeddah on Sunday, Hajjar sa...
JEDDAH: The Board of Trustees of the King Abdullah International Foundation for Charity and Humanitarian Works on Sunday held its third meeting in Jeddah in the presence of Prince Khaled bin Abdullah, the board chairman, and Prince Miteb bin Abdullah...
RIYADH: The Ministry of Health has announced that six people were infected with the Middle East Respiratory Syndrome Coronavirus (MERS-CoV) in the period from June 28 to July 6.The ministry has now recorded 1,045 cases of MERS since June 2012, with 5...
ALKHOBAR: Patient visitations play an important role in the healing process, provided the well-wishers adopt the right approach by speaking and acting in a manner that the sick person’s morale is lifted. However, any wrong move by the visitor may aff...
MAKKAH: The price of residential land has registered a drastic 30 percent drop due to the slump in the market over the past six months, said an online newspaper.According to real estate dealers, the reason behind the decision was the imposition of 30...

Stay Connected

Facebook