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 Mergers & Acquisitions, Packaging, Extrusion, Film & Sheet
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

Sainsbury, Schoeller Allibert to recycle food handling crates

July 30, 2014 1:37 pm ET

British retail group Sainsbury's has contracted Dutch recycler Schoeller Allibert BV to reprocess all of its old food crates back into food-grade...    More

Image

Bankruptcy court confirms GSE reorganization plan

July 29, 2014 4:01 pm ET

The U.S. Bankruptcy Court in Wilmington, Del., has confirmed the reorganization plan for geomembranes maker GSE Environmental Inc.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events