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Berry Global muscles in on RPC deal

The plastic packaging specialist has asked for material to conduct due diligence.

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RPC specialises in plastic packaging (Dominic Lipinski/PA)

RPC specialises in plastic packaging (Dominic Lipinski/PA)

RPC specialises in plastic packaging (Dominic Lipinski/PA)

Berry Global Group has barged in on Apollo’s £3.3 billion takeover deal for plastic packaging maker RPC, saying it is considering tabling a rival bid for the firm.

Just a week after the US private equity giant had its 782p-per-share offer accepted, Berry Global said it has now asked for material to conduct due diligence on RPC.

However, Berry Global, also a plastic packaging specialist, has not yet decided whether to make an offer.

The firm said in a statement: “Berry announces that it is considering a possible offer in cash for RPC and has requested due diligence information from RPC for this purpose.

“This announcement is not a recommendation or a solicitation of an offer to sell securities of RPC.

“Accordingly there can be no certainty that an offer will be made by Berry to acquire RPC. A further announcement will be made as and when appropriate.”

Apollo’s deal, which also included a dividend of 8.1p a share, represents a 16% premium to RPC’s closing share price on September7, the last day prior to the start of the offer period.

RPC said it accepted Apollo’s offer in light of risks to the business posed by the “current political and macro-economic environment”.

The firm said on Thursday: “RPC confirms that it has, this morning, received a request for diligence information on the company from Berry.

“The board of RPC confirms that it will engage with Berry in accordance with its obligations under the code and in order to advance discussions in the interests of delivering best value to shareholders. A further announcement will be made when appropriate.”

RPC shares were nearly 4% higher in afternoon trade at 794p.

PA Media