Regulator delays Amcor merger decision

By Kate Tilley
Correspondent

Published: January 23, 2014 1:01 pm ET
Updated: January 23, 2014 1:08 pm ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Film & Sheet, Extrusion
Companies & Associations Amcor Ltd.

MELBOURNE, AUSTRALIA — Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), has delayed a decision on whether it will approve Amcor Ltd.’s proposed takeover of Detmold Flexibles.

ACCC had originally set Jan 30 as the date on which it would issue a final decision or a statement of issues. But on Jan. 21 the Canberra-based regulator decided to seek additional information from the merger parties. A new date has not been set.

Amcor, the Australian-based multinational packaging company, proposed a A$50 million acquisition of Detmold Flexibles, a unit of Adelaide-based Detmold Group, on Nov. 18. Amcor aims to merge the Melbourne-based business with its Amcor Flexibles Asia Pacific division.

Detmold Flexibles operates two flexible packaging plants in the state of Victoria at Dandenong and Port Melbourne and specializes in providing flexible packaging for fast moving consumer goods and industrial, medical, hygiene and household products.

ACCC is considering the proposed acquisition under s50 of the Competition and Consumer Act 2010, which prohibits mergers and acquisitions likely to substantially lessen competition in a market.

An ACCC spokesman told Plastics News he is unsure whether ACCC has requested more information or one of the parties has indicated it has extra information. “A delay like this is not unusual; it happens in between a third and half of these matters,” he said.

ACCC had initially requested specific details about the businesses’ sourcing of flexible packaging; their products and the nature and extent of current competition to supply them in Australia; tender processes; the extent to which both companies compete to supply products; whether Detmold has lower prices or better services than its competitors; any new expansion of supply; and current imports.

Meanwhile, Amcor has successfully split into two separate companies. Its demerger company, Orora Ltd., was listed on the Australian Securities Exchange on Dec. 18 and shares started trading on Jan. 3.

The US$2 billion demerger sees Orora focus on the Australian and New Zealand fiber, glass and beverage can packaging markets, plus packaging distribution in Australia and North America. Its products and services include corrugated boxes, folding cartons, recycled paper linerboard, glass bottles and jars, multiwall paper sacks, closures, aluminum beverage cans, bulk bags, packaging design and testing services, and recycling services.

Amcor now specializes in flexible and rigid plastic packaging and tobacco packaging for overseas markets.


Comments

Regulator delays Amcor merger decision

By Kate Tilley
Correspondent

Published: January 23, 2014 1:01 pm ET
Updated: January 23, 2014 1:08 pm ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Kydex, Allen Extruders joined under Sekisui SPI name

September 17, 2014 4:12 pm ET

Sekisui Chemical Co. Ltd. is combining plastic sheet makers Kydex LLC and Allen Extruders LLC under one roof as Sekisui SPI.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events