Packaging giant Amcor will spin off its Australian canning, bottling and carton business into a separate listed business.
The Australasia and Packaging Distribution unit, which had $2.87 billion in revenue last year, will appoint its current president Nigel Garrard as chief executive and Amcor board member Chris Roberts as chairman, the company said.
The unit to be spun off, AAPD will be focused on the glass, fibre and beverage can packaging markets in Australasia and packaging distribution in North America and Australia. Amcor will focus on plastics packaging, a global business.
Following the demerger, both Amcor and the new company will be listed on the Australian Stock Exchange.
"Although Amcor and AAPD are both packaging companies they are actually very different in terms of product segments and geographic focus," Amcor chief executive and managing director Ken MacKenzie said.
Mr MacKenzie will remain the CEO and managing director of Amcor, with Graeme Liebelt as chairman. The plan will need to be approved by shareholders.
The company said it expected the demerger to "enhance shareholder value by enabling each company to better pursue their own growth agendas and strategic priorities".
It expects the demerger to occur in December 2013.
