Packagers may be cautious about the outlook, but that doesn’t mean they won’t be wrapping up deals.

Wachovia analyst Ghansham Panjabi writes in a research report that the acquisition market is robust with the environment favoring strategic buyers.  The most talked about is Alcan’s packaging business, which Reuters reported in August was close to being sold to Bubble Wrap maker Sealed Air Corp. for up to $5 billion cash. Montreal-based Alcan is selling the unit following its takeover by mining group Rio Tinto. “While Sealed Air did not dispel the Alcan Packaging media speculation, our view is that body language out of the company (touting balance sheet flexibility), and desire to solidify critical mass overseas likely render them serious bidders,” Panjabi writes, in a note following a recent conference. But food packaging maker Bemis “does not want to expand into Europe, which we believe is a telling sign that they are not interested in Alcan Packaging”, he writes. For Silgan, which makes metal containers for food, he writes that “an acquisition seems likely on the horizon, noting that due to the recent credit crunch, the M&A pipeline looks fuller, and at more reasonable prices - most likely in plastic or closures”.