The packaging industry faces many difficulties due to rising raw materials. As one of the world's top packaging companies, Amcor (ASX: AMC) has negotiated with its US competitor Bemis for more than a year and is about to reach an agreement to acquire the company for A$7 billion, which is expected to become the world's largest flexible plastic packaging. Product manufacturer

Amcor provides global packaging solutions for a wide range of packaging products for the food, beverage, healthcare, home, and personal care, and tobacco packaging industries, and maintains industry leadership. Bemis operates 57 packaging plants in 12 countries, but most of its operations are in the United States.

The acquisition gives Amcor a big step toward its global goals. The deal is a full stock acquisition that will result in Amcor listing in the US. The source said that the deal is expected to be signed this week. As the negotiations entered the final stage, Bemis shares soared 11% on Friday to close at $51.53. The deal will bring Bemis to a market value of $5 billion (A$7 billion).

Amcor CEO Ron Delia and his consultant contacted Bemis more than a year ago, but the two companies failed to agree on the price. Subsequently, due to the rise in oil prices, resin prices rose sharply, and the prospects of large packaging companies were difficult. The two companies returned to the negotiating table and finally reached an agreement.

The source from ACB News