The Australian Competition and Consumer Commission has decided not to intervene in the proposed acquisition by Visy Industrial Packaging of ACI Plastics Packaging's non-beverage container and closure businesses. Visy and ACI both currently produce a variety of plastic containers and plastic closures.
"There are a range of current and potential suppliers for non-beverage plastic containers in Australia", ACCC Chairman, Mr Graeme Samuel, said today.
"Customers, in many instances, will also have the opportunity to look at using different packaging materials, such as glass, metal and paper products. In addition, large customers are likely to remain in a good negotiating position vis-a-vis the merged entity.
"Some concern may exist over the availability of particular types of plastic containers that suit customers' packaging and marketing preferences, but the ACCC needs to examine mergers and acquisitions in the context of an appropriately defined market. In this case, it considered that to be for non-beverage rigid plastic containers.
"In terms of the supply of plastic closures, Australia imports between 30 and 35 per cent of the total plastic closures sold, providing a significant competitive constraint on the merged entity".