Jul. 7--NEENAH -- When one company buys another, it's easy to assume the worst.

"It's always a first concern; you worry how an acquisition will impact the local economy and jobs," Neenah Mayor George Scherck said today. "Fortunately, we're not going to have to worry about that."

Scherck was referring to Bemis Co. Inc.'s $1.2 billion purchase of Alcan Packaging Food Americas from its parent mining giant Rio Tinto PLC. Once the deal closes later this year, the Neenah-based flexible-packaging maker will grow from a $3.8 billion company to a $5.3 billion giant.

Scherck said the fact Bemis plans to keep all of Alcan's Fox Cities facilities open is good news during one of the worst economic downturns in decades.

"Anything that creates stability in the local economy is especially positive now," he said. "Their goal clearly is to increase their production capacity, which holds great promise for their future here."

Industry analysts say the deal, announced late Sunday, will increase Bemis' market share over one of its main rivals, Sealed Air Corp.

The purchase also will make Bemis among the Fox Valley's largest employers. The company now employs about 3,300 in the Fox Valley and has 10 plants in addition to its administrative offices in Neenah.

"We think this is good news for Alcan Packaging because now they will be matched with a company that focuses on the packaging business," Melanie Miller, vice president and treasurer of Bemis, said Monday.

Alcan has operations in Neenah and Menasha, which employ about 1,000 people. Miller said Bemis plans to keep all Alcan Fox Cities sites open, but Alcan will take on the Bemis name after the deal closes.

Some job cuts are likely, though Miller expects the cuts to come mostly on the administrative end as Bemis absorbs those functions from Alcan, which is based in Chicago.

"We did not do this acquisition focused on taking out capacity," she said. "We think Bemis and Alcan are at appropriate levels of capacity utilization now."

Wall Street appeared to endorse the move, sending shares up more than 5 percent Monday. Bemis shares gained $1.22 on the New York Stock Exchange, closing at $25.50.

Brian Jacobsen, chief market strategist at Meno-monee Falls-based Wells Fargo Funds Management, said Bemis is acquiring a strong company.

"This is a big acquisition for Bemis because it will increase their production capacity and hopefully, through economies of scale mean they will be able to produce product at a lower average cost," he said.