Nampak is South Africa's largest packaging company. (AFP)
South African packaging company Nampak said it will buy closely-held Nigerian drinks-can maker Alucan and has an option to purchase a plastics manufacturer in a $301-million deal to expand in Africa's most populous country.
"This acquisition will significantly increase Nampak’s presence in Nigeria, which is Africa's second largest economy and where we already manufacture food and general cans in our factory in Lagos," chief executive Andrew Marshall said on Monday.
Nampak also said it was considering an expansion of its Angola beverage can factory with a second line. Investment in the entire plant, including the existing facility, will probably be about $250-million, the company's regional head Tim Leaf-Wright told reporters on November 14.
Nampak wants to expand in faster-growing African economies to help offset slower economic expansion in its home South African market, the Johannesburg-based company said last November. Its shares increased 2.6% to R31.56 as of 9.50am in Johannesburg, paring a 2013 decline to 0.9%. – Bloomberg