Dubai-based retail and manufacturing group Al Ghurair Group has said it is interested in acquiring packaging assets from Rio Tinto Alcan.
It is understood that due to competition concerns, the European Commission, EuropeÔÇÖs anti-trust regulator, may force Australian firm Amcor to sell some of the packaging assets it purchased in August from Rio Tinto Alcan for $2 billion (Ôé¼1.3 billion).
London-based Rio Tinto has been disposing of assets since its $38 billion (Ôé¼26 billion) takeover of Canadian aluminium producer Alcan in 2007.
So far it has announced $7 billion (Ôé¼4.7 billion) of deals, including the sale of its Latin American iron ore and potash deposits to Brazilian firm Vale; 56 per cent of its cable business to US private equity firm Platinum Equity; and some of its packaging operations to Bemis Co., also based in the US.
Last month, Amcor revealed that the Alcan acquisition would double the size of its flexible packaging business and produce sales of around Ôé¼3.8 billion.
Al GhurairÔÇÖs Arabian Flexible Packaging (AFP) unit has said it will look at any assets that may be sold, either by Alcan or by Amcor, though it has not revealed how much it would be willing to spend.
Even if Amcor is forced to sell some units, it will retain the pharmaceuticals and tobacco packaging businesses as well as the European and Asian food packaging units it acquired under the terms of the recent Alcan deal.
AFP, which manufactures corrugated board and other flexible packaging material, has also confirmed it will continue to look for other opportunities in the GCC and the Middle East.
The company has also said it is starting to look for possible acquisition targets in Europe as domestic competition heats up.
Until recently it exported 100 per cent of its products to Middle Eastern destinations; however, it is now beginning to branch into Europe, with 20 per cent of its products currently being exported there.
Last month, AFP became the first UAE-based firm to achieve both BRC and HACCP certification, which it hopes will widen its appeal in Europe.
Australia and south-east Asia are also growing markets for the firm, it has said.
*       *       *
