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Visy is reportedly squaring off against two private equity firms in the battle for Owens-Illinois (OI)’s Australian and New Zealand assets, as the bidding enters its final round.

The packaging giant, owned by Australia’s richest person Anthony Pratt, is up against Sydney-based firm Pacific Equity Partners and international private equity firm Blackstone in the $1bn Goldman Sachs-run auction of OI’s local glass business, according to the Australian Financial Review.

Visy sees “strong strategic merit” in the OI acquisition given potential synergies with its own small glass business, says AFR, and is taking its own counsel on the proposal.

PKN spoke to analyst Paul Allen of Margin Partners who says the major challenge for all bidders right now is validating just how much contracted demand OI Glass has.

"Analysts are scurrying around respective glass categories and customers trying to determine the truth behind OI’s demand, customer tenure and quality claims. No one wants to pay a premium for a glass factory that isn’t 95% sold out!"

Major local food and beverage clients of OI Glass ANZ are watching carefully and keeping their buying powder dry, Allen says.

"There appears to be plenty of value in this forthcoming sale process for many stakeholders," he says.

Binding offers for the third and final stage of the OI auction are due by 19 February. Pacific Equity Partners last year raised $2.5bn for acquisitions. 

Food & Drink Business

Mars Food & Nutrition Australia is continuing to support Foodbank Australia in tackling food insecurity, with plans to deliver four million meals to Australians in need this year through pasta sauce brand, Dolmio.

Australian flour and bakery manufacturer, Allied Pinnacle, has appointed Anthony Ogilvie as its first head of Sustainability, marking a significant step forward in the company’s Environmental, Social and Governance (ESG) strategy.

The Australian Food and Grocery Council (AFGC) has appointed its first independent chair, Bernie Brookes. Brookes starts immediately and brings more than four decades of executive and board level experience in retail and consumer goods in Australia and internationally.