The London-headquartered consumer packaging company confirmed today that it has received approval from the Chinese authorities for the sale of its cosmetics, toiletries and household care products business for 459 million US dollars in cash. This, together with the sale of the High Barrier Food business (as announced on 31 August 2012), finalises the sale of Rexam’s personal care business for a total of 709 million US dollars (439 million British pounds or 536 million euros).
Last November, the European Commission also cleared the Albéa-Rexam merger considering that “customers in the cosmetics and perfumery industry will continue to have alternative suppliers for cosmetic packaging.”
The completion of this last regulatory step, opens the way to the creation a global leader in laminate and plastic tubes, foam pumps, fragrance samplers, lipstick and mascara containers, formed by the adjunction of Rexam’s cosmetics (10 manufacturing units, 6,000 staff) business to Albéa (35 manufacturing, 10,000 staff). According to Moody’s the combined company will hold the second largest market share in the fragrance pumps category and the third largest market share in the lotion pumps category
On 3 July 2012, Rexam announced its intention to return around 370 million British pounds to shareholders following completion of the disposal of Personal Care. Rexam anticipates that on or about 8 January 2013 it will post a circular to shareholders regarding the proposed Return of Cash.