Amcor agreed to purchase the tobacco packaging operation of Souza Cruz for BRL 96 million (EUR 28.5 million) and to a long-term contract to supply packaging to the Brazilian cigarette maker, the company said.

“This acquisition is aligned with our strategic objective of growing our packaging business in Latin America”, said Ken MacKenzie, Amcor’s chief executive officer. The Brazilian market accounts for 35 per cent of cigarette consumption in Latin America.
Amcor will take over packaging operations in Cachoeirinha, Rio Grande do Sul once Brazilian anti-trust officials have reviewed the deal. Amcor expects to realize about BRL 200 million in annual sales, the company said.
British American Tobacco (BAT) is the majority owner of Souza Cruz, which is the dominant player in the Brazilian cigarette market.