Following months of negotiations and two less attractive takeover offers, the board of directors at French packaging producer Pechiney (F-75218 Paris; www.pechiney.com), has recommended that its shareholders accept the revised EUR 4 bn cash/share (EUR 48.50 per share) offer of Canadian group Alcan Aluminium Ltd. (Montreal, Quebec; www.alcan.com). In a letter to its shareholders, Pechiney management said it now recognises the “industrial logic” and the “relative merits” of a Pechiney-Alcan combination versus a stand-alone strategy.

If the deal is approved by regulatory authorities, Alcan will become not only the world´s largest aluminium producer behind US-based Alcoa, but also Europe´s number one plastics packaging manufacturer with annual sales in this segment of EUR 1.35 bn and European plastics consumption of around 130,000 t/y. The new Alcan packaging division, which would produce plastics as well as flexible aluminium packaging, would have annual sales of more than EUR 3 bn.

Alcan´s takeover of the French group is subject to approval by competition authorities in both the US and Europe. Three years ago, the EU competition authority turned thumbs down on a planned three-way merger of Alcan, Pechiney and the Swiss Algroup. Its approval of the Pechiney takeover is expected to be made contingent on Alcan´s divestment of several European aluminium plants.