The world''s biggest beverage can maker, UK-based Rexam, which makes cans for some big-name beverage companies, has bought the plastic packaging business of US group Owen-Illinois (O-I) for $1.8 billion (approximately Rs7,342 crore), including a tax basis step-up of an estimated net present value of $260 million, making the effective cost of the acquisition $1,565 million.

Rexam is one of the world''s top five consumer packaging groups and the world''s leading beverage can maker. It serves the beverage, beauty, pharmaceuticals and food markets with around 100 manufacturing operations in over 20 countries.

O-I''s plastic unit has its headquarters in Ohio and operates 19 manufacturing plants, mainly in the US and Puerto Rico.

Rexam, which supplies Coca-Cola, and Absolut Vodka, says the acquisition will be an excellent fit in terms of customers, technologies, innovation, end use applications and geography. It said the deal would allow it to expand its presence in the plastics market, and specifically in the healthcare sector dominated by O-I.

Last Friday Rexam, while confirming it was in talks with OI, had said that it would use £448 million it raised from the sale of its glass unit in March and floating float 58 million extra shares to help pay for the deal.

Leslie Van de Walle, Rexam''s CEO said: "The acquisition of O-I Plastics will transform our plastic packaging business and is consistent with our strategy to expand our positions in growth markets. It gives us meaningful scale in plastics, leading market positions in core growth markets and is anticipated to create significant value through synergies and cross-selling opportunities.

"Following the successful reinvestment of the proceeds from the sale of Glass, Rexam, with its leading positions in Beverage Cans and Plastic Packaging, will have two significant and strategically well positioned global businesses with good growth prospects."