Australia’s competition watchdog has approved Amcor’s $238 million takeover of Aperio Group.
Amcor has 21 packaging manufacturing plants in its Asia Pacific operations, while fellow packaging company Aperio Group has 13 manufacturing facilities in Australia and New Zealand, and one plant in Thailand.
“After an extensive investigation, the ACCC formed the view that the proposed acquisition would not result in a substantial lessening of competition in any market,” the competition regulator said in a statement today.
In making its decision, ACCC chairman Rod Sims said the commission considered there would still be overseas competitors to Amcor manufacturing value-added flexible packaging.
“Some overseas suppliers offer Australian warehouse and distribution services to better compete with domestic suppliers. There are also Australian suppliers looking to expand,” Sims said.
In its decision, the ACCC stated that if the newly merged business attempted to increase the price of packaging or decrease service levels, competitors supplying Australian customers would be able to lure market share away from the company.
Amcor shares were up 10c to $7.28 in early trade.