Bemis close to finalizing Alcan buyout after DOJ settlement, analyst says; shares climb

Bemis closer to finalizing Alcan buyout; shares up

NEW YORK — Bemis Co. should be able to quickly close its deal to buy the Alcan packaging unit from Rio Tinto PLC now that it has reached an agreement with the Department of Justice to sell off certain assets, an analyst said Thursday.

Bemis shares rose more than 4 percent in afternoon trading.

The $1.2 billion deal “paves the way for business growth,” analyst Timothy Thein of Citi Investment Research said, maintaining a “Buy” rating on the stock.

The Justice Department said Wednesday that its agreement with Bemis preserves competition in the packaging industry. Bemis and Alcan are two of the biggest makers of flexible packaging for cheese and shrink-wrap bags for fresh meat in the U.S.

Bemis’ sale of certain meat and cheese packaging assets of Alcan, including two factories, will not impact the timing of the closing, Thein said.

Bemis, based in Neenah, Wis., can almost immediately close the deal to buy Alcan from mining conglomerate Rio Tinto once the court approves the settlement with the Justice Department, he said.

Shares of Bemis climbed $1.15, or 4.1 percent, to $29.35.