Spain's La Seda de Barcelona SA agreed to buy Amcor Ltd.'s European PET unit for 425 million euros (US$575 million), seeking to become one of Europe's biggest makers of plastics used in beverage and food containers.

La Seda de Barcelona, Europe's largest PET manufacturer, is consolidating its market-leading position with the acquisition of Amcor, the third purchase this year for the Spain-based company. Total proceeds from asset sales, upon completion of the European PET sale, would be about €700 mln.

The proceeds from the sale would be redeployed into specified growth market segments, and used to strengthen existing market positions to deliver improved earnings and returns, the company said.

Amcor's PET business produces containers and preforms for food and beverage applications, including carbonated soft drinks, bottled waters, juices, isotonics, alcoholic beverages, edible oils, dressings, spreads and sauces. Amcor is selling plastics packaging assets in western Europe and building new factories in Poland and Ukraine where production costs are lower to tap growth in emerging markets. PET is the acronym for polyethylene terephthalate and is Amcor's biggest division.

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