Rexam Bottle Buy From Saint-Gobain Possible

UK packaging group Rexam PLC is considering a bid of more than 3 bln stg for the glass bottles business of Saint-Gobain, the daily Telegraph reported.

The French building materials firm is considering a sale of the division to help finance its recently agreed 3.9 bln stg acquisition of plasterboard maker BPB, the newspaper added.

Asked whether Rexam would be interested the business, CEO Lars Emilson told the newspaper: "They are already global players. We will stay where we are and use that as a global platform. I have no idea if they are considering selling ... so it is a very hypothetical question.

"But we wouldn´t shy away from growing our glass business if something major became available." Emilson said Rexam is also interested in acquisitions that would strengthen its rapidly-growing plastics business.

The purchase of Saint-Gobain´s glass bottle business by Rexam is possible, says an analyst, but it would be "a huge deal." Follows report that Rexam is considering a GBP3B bid. "It´s certainly possible," she says. "Rexam have said it wouldn´t shy away from doing a deal in its glass business, but whether this is the one I don´t know." Points out the purchase would almost double Rexam´s market cap, but reckons the company would find plenty of support for the deal. But also notes the report suggests the sale of the business has yet to be finalized by Saint-Gobain. Rexam closed at 519p.

Saint-Gobain declined to comment.