Amcor Ltd. (AMC.AU) Chief Executive Ken MacKenzie said Thursday he expects U.S. and European trade regulators to approve its A$2.44 billion acquisition of parts of Rio Tinto Ltd.'s (RTP) Alcan packaging business.

MacKenzie told reporters after the company's annual general meeting in Melbourne that he expects the deal, announced in August, to close by Jan. 1 pending regulatory approval.

Initial feedback from regulators should come in the next six weeks, he said.

The company currently has net debt of A$3.4 billion or debt gearing at 43%, up from A$2.6 billion at June 30 and gearing of 46%.

With targeted gearing of 50%, MacKenzie said Amcor has sufficient headroom for further acquisitions.

Within two years of the close of the Alcan deal, Amcor anticipates strong cash flow, which may allow for further capital management, including reinvestment in the business, debt reduction or return to shareholders.

-By Andrew Harrison, Dow Jones Newswires;

61-3-9292-2095; andrew.harrison@dowjones.com
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