Polish firm acquires 35% stake in SMC unit
The San Miguel group is taking in Poland-based Can Pack Group, a key player in the global packaging industry, as a strategic partner in its aluminum can manufacturing business.
In a statement on Thursday, San Miguel Corp. said its packaging unit San Miguel Yamamura Packaging Corp. (SMYPC) had entered into a partnership with Can-Pack S.A.
Under the agreement, Can-Pack S.A. will acquire a 35-percent interest in SMYPC. Through the deal, the San Miguel group hopes to spin off its existing aluminum plant in Cavite into a new joint-venture firm to be called Can Asia Inc., with the local conglomerate retaining 65 percent control of the venture.
“This strategic partnership will further modernize SMYPC’s aluminum can business while utilizing the know-how and technologies of CPG,” SMC said in its statement. “It also aims to introduce various aluminum can packaging formats to the growing market in the Philippines and the Asia-Pacific region.”
The closing of the share purchase agreement is expected to be completed before the end of the year. No data was available on CPG’s planned investment in the local packaging unit.
CPG is a major player in the global packaging industry, with revenues exceeding $1.4 billion. It has operations in the Ukraine, Romania, Spain, Finland, Russia, Turkey, Morocco, Egypt, India, and the United Arab Emirates.
In a separate statement, CPG announced that its entry in this joint venture was “in response to the growing demand for packaging products such as aluminum cans in the Asia-Pacific market.”
“The production lines currently operated by San Miguel Yamamura Packaging Corp. will be reengineered and modernized,” CPG said in an announcement on its website.