Union says Amcor acquisition would cause job losses

By Kate Tilley
Correspondent

Published: February 23, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Film & Sheet

SYDNEY, AUSTRALIA (Feb. 23, 1 p.m. ET) — A major Australian trade union has told Australia’s competition watchdog that Amcor Ltd.’s proposed acquisition of flexible packaging supplier Aperio Group Australia Pty. Ltd. should not go ahead because it will cause significant job losses.

The Australian Competition and Consumer Commission (ACCC) is investigating whether global packaging supplier Amcor’s proposed acquisition will lessen competition in the market.

Even if Melbourne-based Amcor gets ACCC approval to proceed with the purchase, it will have to outbid other buyers that have shown interest in taking over Melbourne-based Aperio.

ACCC released a statement Feb. 23 seeking further information on “certain competition issues” that have so far arisen from its review. Stakeholders have until March 8 to make further submissions. ACCC’s final decision will be deferred to March 29.

A final report was initially due for release Jan. 25 but has been delayed three times.

The Sydney-based Australian Manufacturing Workers Union (AMWU) represents more than 100,000 workers in the metal, vehicle, food, technical, automotive, print and packaging manufacturing industries. It has members at both Amcor and Aperio.

“We see the move by Amcor as one of eliminating a competitor, rather than the acquisition of an asset to benefit the market,” AMWU said in its submission to ACCC

“We do not see the acquisition of Aperio would lead to increased or more effective competition, resulting in lower prices for consumers or businesses, or better or more timely delivery of services. We see the likely outcome as job losses for Aperio members.”

The submission said Aperio employs about 550 employees, so job losses will have “significant direct and flow-on effects.”

It warned cost reductions and redundancies will earn Amcor excess profits. “We are not convinced any import pressures will provide those competitive pressures.”

AMWU said there are four main competitors in Australia’s plastic bag and film manufacturing market. Amcor has a 22 percent to 25 percent market share; Aperio 16 percent to 18 percent; Melbourne-based Sealed Air Australia (Holdings) Pty. Ltd. 16 percent; and Melbourne-based Innovia Films (Asia Pacific) Pty. Ltd. three percent.

“Any acquisition by Amcor of Aperio would see its market share rise to 38 percent to 43 percent; more than double the other two players.” The union said any player with more than 40 percent market share will have the ability to exert “upward pressure” on prices.

“We believe diversity needs to be retained in the packaging sector so competitive pressures are retained,” AMWU’s submission said.


Comments

Union says Amcor acquisition would cause job losses

By Kate Tilley
Correspondent

Published: February 23, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Image

Kingspan adds more European production with Joris Ide acquisition

January 27, 2015 10:30 am ET

Kingspan Group plc has purchased insulated panels and building systems supplier Joris Ide Group for 315 million euros ($356 million).    More

Image

Bain buying TI Automotive

January 27, 2015 8:49 am ET

After months of speculation, Auburn Hills, Mich.-based TI Automotive Ltd. entered into an agreement Tuesday to be acquired by private equity firm Bain...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events