IPL Plastics, formerly known as One51, which earlier this year floated on the Canadian stock exchange, is said to be in merger talks with rival Dutch packaging company Schoeller Allibert.

Schoeller Allibert is said to have been in merger talks with IPL for several months.

It is understood that one of Schoeller’s largest customers is for sale and that may be delaying the merger talks from progressing.

It is understood that, at this time, discussions are ongoing, which doesn’t guarantee that any deal will go ahead.

The Dutch company is majority owned by an affiliate of Brookfield Asset Management.

Interestingly, CDPQ, which bought an initial 25% stake in One51 from businessman Dermot Desmond and now holds around 33%, is also an investor in Brookfield.

It is unclear what a potential merger may look like, but it could mean the issuing of new shares and additional bank debt.

At any rate, shareholders, which include many of the Irish dairy co-ops, will be interest to see what price any new shares may issue at.

The share price has been performing very poorly since the flotation and are down almost 25% since floating on the Canadian stock exchange in June.

IPL is currently trading at C$10.89, which is the equivalent of €1.45 for the old One51 share – a long way off its highs of around €2.45 last year.