Amcor looking to sell three factories in the United States to satisfy American competition regulators for its $US 5.26 billion ($A7.15 billion including debt and pension liabilities) takeover of rival packager, Bemis.
Global packaging manufacturer Amcor says it is starting to see a turnaround in recent tough trading conditions caused by higher raw material costs in some markets after reporting a 21% jump in full-year net profit in its last year as an Australian-based company.
A move by corporates towards sustainability has been weighing on Amcor's share price, Macquarie notes. Major customer Unilever has now announced a plan to make all its packaging reusable and recyclable by 2025, including a move toward a circular economy of collection and reprocessing.
The combination Amcor-Bemis has started selling off non-core assets and Deutsche Bank analysts suggest with the proceeds from these divestments management could announce a share buyback of up to US$1bn as early as the full year result in August.