Amcor delays Bemis takeover due to US Government shutdown

Packaging company Amcor Limited (ASX:AMC) has pushed back the closing date of its takeover of American rival Bemis Company Inc (NYSE:BMS) by a quarter, citing the partial US government shutdown.

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Packaging company Amcor Limited (ASX: AMC) has pushed back the closing date of its takeover of American rival Bemis Company Inc (NYSE: BMS) by a quarter, citing regulatory logjam due to the partial US government shutdown.

The $5.25 billion all-stock deal was initially expected to close in the first quarter of 2019, Amcor had said in August last year.

But it has now been pushed to the second quarter.

'In the United States, antitrust approval and completion of shareholder meeting documentation review by the US Securities and Exchange Commission have been delayed due to the partial US government shutdown,' Amcor, the world's biggest listed packaging company, said in a statement on Thursday.

The company had secured antitrust clearances and other regulatory consents in all other jurisdictions besides the US, the statement added.

Amcor swooped on Bemis last year as packaging firms jostled to buy growth with acquisitions.

The Amcor share price has gained 3.25% so far in 2019.

with AAP

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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