"It represents a major step in our strategy to redress the imbalance of power currently in the hands of packaging specifiers, which threatens the long-term stability of our industry."
There will be no operational impact on the European plants as Malbak deals in paper packaging and Nampak in plastic.
"There’s no possibility for plant integration but there is an opportunity to integrate services. And we’ll continue to grow in our specialist sectors," said Monks.
Nampak has a strong position in supplying the milk market with ubiquitous handled plastic containers and Malbak is a big sup-plier for the healthcare, chilled and convenience food, frozen foods and chocolate markets. The groups also hope to benefit from economies of scale.
The merged group will be valued at more than £630m (R10bn), and will employ 20,000 people in 17 countries, including the UK, Italy, Spain, Germany, France, Netherlands and Belgium.
Shareholders will vote on the merger at a meeting in Johannesburg on 5 August, following rapid clearance by South African regulatory authorities. The merger is primarily a "share swap" and not a cash offer.
Story by Rachel Barnes
