U.S. packaging company Ball Corp. is nearing a deal to buy U.K. rival Rexam PLC, according to people familiar with the matter, a move that would create the world’s largest beverage-can maker.
The companies said this month they were negotiating a cash-and-share offer that would value Rexam at around $6.2 billion. But some analysts cited regulatory concerns as one impediment to the deal, because both companies have a significant share of the U.S., European and Brazilian markets.
Broomfield-based Ball’s acquisition of Rexam, whose customers include Coca-Cola Co. and PepsiCo Inc., could be announced as early as this week, sources said.
In 2014, Rexam and Ball each held roughly 21 percent of the global market share for beverage cans, according to research firm Vertical Research Partners. Rexam this month bought a 51 percent stake in beverage-can maker United Arab Can Manufacturing Ltd., further increasing its market share.
The deal likely would draw the attention of antitrust regulators, said Chip Dillon, a partner at Vertical Research.
Ball has more than 14,500 employees, with $8.6 billion of sales for 2014.
