AUSTRALIAN CO AMCOR SEES COMPLETION OF ALCAN DEAL AROUND JANUARY

Australian company Amcor Ltd (ASX:AMC) managing director Ken MacKenzie says the group's $A2.44 billion (US$2.27 billion) acquisition of Rio Tinto's packaging unit, Alcan Packaging, is expected to be completed by January 1, plus or minus 30 days.

The deal, which was announced in August, will result in Amcor's gearing moving to 43.4 per cent, he said while speaking after the company's annual general meeting on Thursday.

Mr MacKenzie said Amcor was confident it would get 80 per cent of the promised $A200 million to $A250 million in cost synergies within first two years of the completion of the transaction.

He also said the company's 2009/10 net profit after tax depended upon currency movements and earnings from Alcan, but was not prepared to give estimates.

He also said exchange rate impacts at the completion of the deal may lower Amcor's earnings before interest, tax, depreciation and amortisation (EBITDA) multiple from a current 5.5 times to between 5.2 and 5.3 times.

He confirmed Amcor was facing a class action led by law firm Maurice Blackburn related to alleged price fixing in the packaging market.

(AAP)lm

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