It is interesting as we all look at what is happening on the ASX boards, but there is a lot of action off the boards that will no doubt impacting the listed businesses.
I am still convinced that Ruffy's buy of CKL was a blocking moving and maybe down the track he will merge it with PPG.
What is also worth noting is that a mid sized private packaging distributor called Silverlock was purchased by another private packaging company called Plasdene. Silverlock is a distributor of rigid and other packaging while Plasdene are mainly glass and bottle manufacturers and distributors.
Plasdene's range is predominantly built up from PGH (Pact) products. I suspect that this small consolidation play will eventually wind up into a larger consolidation of Plasdene into PPG!
What is then left is the Cospak business (Circa $120m) which is majority if not totally owned by San Miguel (The Philippine conglomerate) Their business would be decimated as they to have a significant reliance on PGH (Pact) for product.
I must say the next couple of years will be very interesting, however the level of consolidation will result in PGH and PPG owning over 95% of the rigid plastic's market (outside of Brand owners self manufacturing) Where is the ACCC????
CKL Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
