REX Rexam

BRUSSELS—The European Union on Monday cleared packaging company Ardagh SA's roughly $3.42 billion acquisition of assets belonging to Ball Corp. and Rexam PLC, clearing the way for the beverage can-makers' merger.

The European Commission, the bloc's antitrust agency, said in a statement that it "concluded that the proposed acquisition would raise no competition concerns, because Ardagh is not active in the manufacturing of beverage cans, nor on related markets."

In January, the EU waived through Ball Corp.'s £ 4.4 billion ($4.96 billion) acquisition of rival beverage-can maker Rexam PLC after Ball agreed to sell 12 production plants in Europe. The EU had opened an in-depth investigation into the deal, over concerns the combination of the world's two biggest can makers could drive up prices for their products in the bloc.

Ball announced in April it would sell its European, U.S. and Brazilian assets to Luxembourg-based Ardagh.

Ball is selling seven Rexam metal beverage can manufacturing plants and one Rexam end plant in the U.S.; eight Ball beverage can manufacturing plants, two Ball end plants and two Rexam beverage can manufacturing plants in Europe; two Ball beverage can manufacturing plants in Brazil; and certain functions in Bonn, Germany, Chester, U.K., Zurich, Switzerland, Sã o Paulo, Brazil, and Chicago and Elk Grove, Ill.

Earlier this year, Ball and Rexam said they expected the merger to close by the end of June.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

(END) Dow Jones Newswires

June 20, 2016 07:35 ET (11:35 GMT)

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