August 6, 2018 / 12:03 AM / 7 months ago

UPDATE 2-Australia's Amcor to buy U.S. rival Bemis for $5.25 bln

(Adds deal announcement, detail)

Aug 6 (Reuters) - Australian packaging company Amcor Ltd on Monday said it would acquire U.S. rival Bemis Co in an all-stock deal valuing the U.S. company at $5.25 billion.

Bemis shareholders would get 5.1 Amcor shares for each Bemis share, or $57.75, per share, resulting in Amcor shareholders owning approximately 71 percent and Bemis shareholders 29 percent of the new entity.

The deal is at a 12 percent premium to Bemis' last close at $51.53.

Amcor said it would establish a primary listing on the New York Stock Exchange with an estimated market capitalisation of $17 billion, while maintaining its Australian listing.

The Australian company had requested a trading halt earlier on Monday to make an announcement on an acquisition, fuelling expectations of a bid after the Wall Street Journal reported Amcor is in advanced talks to buy Bemis.

The packaging industry is under severe pressure due to rising costs, prompting firms to hike prices.

Reporting by Susan Mathew Aditya Soni in Bengaluru; editing by Stephen Coates and Jason Neely

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