Alcan courts suitors for packaging arm
according to unconfirmed newspaper reports.
Cosmetics packaging currently represents 13 percent of Alcan's revenues. India-based Ess Dee specializes in pharmaceutical packaging. The sell off could have implications for the cosmetics industry's packaging supply chain. As part of Rio Tinto's $38.1bn bid for Alcan, the mining company made it a condition of the deal that the packaging arm would be sold off to another entity. News of the Ess Dee bid was first revealed by India's Business Standard newspaper, which said the deal would be worth $1bn. Citing unnamed bankers, the newspaper claimed that the India-based firm Ess Dee is not the only player in the race. Essel Propack and Amcor are also eyeing Alcan's packaging unit, the newspaper reported. However, the rumors have not been confirmed by any of the companies involved. In 2006, Alcan Packaging registered sales of $6bn - out of a total of $23.6bn for Alcan as a whole. Of this figure beauty packaging represented 13 per cent of the division's revenues.