After an extensive investigation, the ACCC says it has formed the view that the proposed acquisition would not result in a substantial lessening of competition in any market.

Ken MacKenzie, managing director of Amcor says, “This is a pleasing outcome as the acquisition represents an important strategic opportunity for our Asia Pacific flexible packaging business.

“We look forward to integrating these assets into the Amcor Group and working with our customers to deliver an improved product and service offering, particularly through innovation.”

A large number of interested parties were consulted in the ACCC’s review, including domestic and overseas flexible packaging manufacturers, small, medium and large customers and other industry participants.

The ACCC says it carefully considered the likely competition effects of the proposed acquisition in the national market for value-added flexible packaging, which includes packaging for goods such as confectionery, biscuits, bread and frozen foods.

Rod Sims, chairman of the ACCC says, “In making its decision, the ACCC considered that there will be a number of competitors to Amcor, particularly overseas manufacturers of value-added flexible packaging, as this type of packaging is generally easy to transport and import levels are increasing.

“Some overseas suppliers offer Australian warehouse and distribution services to better compete with domestic suppliers. There are also Australian suppliers looking to expand.”

The ACCC considered that if the merged Amcor / Aperio attempted to increase the price of value-added flexible packaging and/or decrease service levels, competitors already supplying Australian customers, along with potential suppliers located overseas, would be able to attract business and win market share away from the merged firm.

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