Reynolds Group Holdings Ltd., a manufacturer of packaging for the consumer food and beverage industry, announced plans to acquire the packaging firm Pactiv for around $6 billion in a friendly takeover. Reynolds, headquartered in Chicago, is a wholly owned subsidiary of Rank Group Ltd., based in New Zealand. Pactiv is headquartered in Lake Forest, Ill.
Pactiv’s board of directors unanimously approved the merger agreement and will recommend that Pactiv’s shareholders approve the transaction. Completion of the transaction is subject to Pactiv’s shareholder approval, regulatory approvals, and customary closing conditions, and is targeted to occur by the end of 2010.
In a release announcing the acquisition offer, Richard Wambold, Pactiv’s chairman and CEO, says, "Pactiv has been a leading performer in its industries since it became publicly held in 1999. We are proud of what we have accomplished, and we are excited to join with Reynolds’ consumer and foodservice businesses to grow and add more capabilities for our customers. All of the Pactiv team takes pride in the fact that we have been able to create the shareholder value released by this transaction, and we are pleased to join a group that is committed to the growth of both its packaging and consumer businesses."
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