Australian packaging company Amcor has said it plans to buy the polyethylene container and closure assets of Germany's Schmalbach-Lubeca for A$2.875 billion (€1.7bn).
Amcor said the deal would boost its annual sales by A$3.3 billion to nearly A$11 billion.
"Amcor is purchasing an extremely well managed business with an excellent track record of growth. The plants are well capitalised with modern equipment and efficient manufacturing processes," Amcor's managing director Russell Jones said.
He said Amcor would sell its 45 per cent stake in Kimberly-Clark Australia to US-based Kimberly-Clark for AUD$700 million as well as issuing shares and debt to fund the purchase in Germany.
Schmalbach-Lubeca, the world's largest maker of polyethylene packaging, is based in Ratingen, western Germany.