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

French investment firm buys Alabama-based CSP Technologies

January 30, 2015 1:10 pm ET

A French investment firm has finalized a deal to buy CSP Technologies Inc., an Auburn, Ala., company that makes specialty plastics packaging.    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

LG Hausys pulls out of Russian PVC profile market

January 30, 2015 11:17 am ET

LG Hausys Ltd., the building and decorative materials offshoot of South Korean giant LG Chemical Ltd., is pulling out of PVC window profile...    More

Image

Report: Brands are falling short on packaging sustainability

January 29, 2015 5:19 pm ET

Packaging in general, and plastic packaging in particular, has a long way to go in terms of recycling, according to a pair of environmental groups.    More

Image

Lund adds to aftermarket auto products portfolio with buy of Bushwacker

January 29, 2015 2:49 pm ET

Lund International Inc. has expanded its portfolio of plastic aftermarket vehicle accessories by acquiring Bushwacker Inc.    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