Leading international paper and packaging group Mondi Group, co-owned by South African politician cum business man Cyril Ramaphosa and David Williams, has signed an agreement with machinery supplier Duropack to pay 125 million euros ($161.34 million) in cash for the acquisition of  Duropack’s German and Czech Republic production units.

The South Africa-based group said in a statement on Friday that the deal consists 2 corrugated box plants which consume approximately 130 thousand tonnes of containerboard per annum and one recycled containerboard mill capable of producing 105 thousand tonnes per annum.

The agreement will also bequeath Mondi’s approximately 5 million euros ($6.2 million) net cash, immediately the acquisition has been completed.

The Johannesburg and London Stock Exchange-listed group said the acquisition is a strategic move to solidify its leading market position in corrugated packaging in central and Eastern Europe.

However, the completion of the acquisition is yet uncertain as relevant competition authorities have to give an approval.

Mondi is a fully integrated Group across the paper and packaging process with production operations across 28 countries and revenues of €5.7 billion ($7.5 billion) in 2011. The Group’s key operations are located in central Europe, Russia and South Africa and as at the end of 2011,  it employed 23,400 people.

Aside Mondi, Cyril Ramaphosa  has  business interest spanning across  various sectors  including  Energy, Real Estate, Banking, Insurance, and Telecoms. He is also a  South African political icon and builder of the most powerful union in the country – the National Union of Miners (NUM) – currently making headlines since the Lonmin crises in South Africa.