O-I Glass Inc. (O-I) has agreed to sell its Australia and New Zealand business unit to Visy Industries (Visy), one of the world’s largest privately owned packaging and resource recovery companies.

“The decision to sell the business follows an in-depth strategic review of our global business portfolio and operating structure that explored how we could best position O-I ANZ for the future,” said Gary Combes, Director Supply Chain, O-I ANZ in a written statement to customers.

Visy is a well-established leader in providing high quality, sustainable packaging products and solutions.

“While O-I is leaving the ANZ market, it remains committed to the glass industry and to its customers across the globe. O-I will continue developing its leading market positions across Europe and the Americas as well as the company’s interests in Asia.

“A close of sale is expected by 31 August 2020. Until then, it will be business as usual for our team as we maintain our ongoing commitments and work to ensure a smooth transition,” says Combes.

According to a report in nasdaq.com, gross proceeds on the sale and related sale-leaseback agreement with Charter Hall, a management company, will be approximately AUD $947 million. O-I has entered into a sale-leaseback agreement with Charter Hall for certain properties valued at about AUD $214 million as well as an agreement to sell the O-I ANZ business to Visy for around AUD $733 million, according to nasdaq.com.

The sale to Visy is subject to customary closing conditions. Both transactions have already received the proper regulatory approvals.

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