ACCC not to intervene in UCB acquisition

The Australian Competition and Consumer Commission will not intervene in UCB Australia Pty Ltd's acquisition of Orica Australia Pty Ltds oriented polypropylene film business.

OPP film is used extensively for packaging in the food and tobacco industries. Orica and Shorko Australia Pty Ltd are the two domestic manufacturers of OPP film. Oricas film is largely used by cigarette manufacturers.

The ACCC noted the number of importers capable of selling into the Australian market and the additional domestic capacity being installed by Shorko as well as UCB as it establishes a local manufacturing presence.

Many OPP film users already import a wide range of OPP film grades, ACCC Chairman, Professor Allan Fels, said today. The additional capacity coming on-line together with the scope for additional imports should constrain domestic pricing.

The ACCC concluded that the acquisition is unlikely to substantially lessen competition.