Rexam (London / UK; www.rexam.com) has confirmed talks with glass market giant Owens-Illinois (OI, Perrysburg / Ohio; www.o-i.com) on the takeover of the US company's plastic packaging division. At the same time, Rexam denied media speculation first launched in the "Wall Street Journal" that a deal, valued at USD 1.5 bn, is imminent. In a statement, the UK group said an acquisition would be contingent on the business's meeting Rexam's investment return criteria.

In January 2007, OI denied plans to sell the division, which has sales of around USD 770m. Its last attempt at divestment was in 2004 – see Plasteurope.com Web of 16.01.2007. The packaging activities are focused on North America, but production plants also are operated in Hungary, Mexico, Brazil, Singapore and Malaysia. The portfolio includes for the most part healthcare containers such as pill bottles, in addition to injection moulded closures.