The remaining interest was acquired from Monteiro Aranha SA for approximately US$140m in cash and gives O-I 100% ownership in Comercio. O-I expects this transaction to be accretive to 2011 earnings.
Comercio’s operations include two plants, one in Sao Paulo and another in Rio de Janeiro. The transaction will allow O-I to fully reflect the results of Comercio’s operations in its financial statements without a reduction for minority partner interest.
For 2010, Comercio’s minority interest represented approximately $10m of O-I’s total net earnings attributable to non-controlling interest (approximately $18m of Ebitda). In addition, O-I streamlined its corporate legal structure in Brazil.
Source: Owens-Illinois
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