The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Wadepack Limited by Carter Holt Harvey Limited, ACCC Chairman, Mr Graeme Samuel, said today.
Wadepack manufactures folded cartonboard packaging and has operations in Melbourne and Sydney. The process of manufacturing folded cartonboard packaging involves converting the raw cartonboard into packaging by a process that generally involves printing, cutting, creasing and gluing.
Carter Holt Harvey also manufactures folded cartonboard packaging and has 5 facilities in Australia. Carter Holt Harvey is vertically integrated through its ownership of a cartonboard mill in New Zealand.
"The ACCC considers the manufacture of folded cartonboard packaging to be a separate market from other elements of the packaging industry, such as corrugated box manufacturing", Mr Samuel said.
"Following inquiries with customers and competitors, the ACCC found that CHH will continue to face competition from other folded cartonboard packaging manufacturers such as Colorpak Limited, Anzpac Services (Australia) Pty Ltd, Amcor Limited and Hannapak.
"The ACCC found that cartonboard packaging manufacturers are able to import the raw cartonboard from overseas and also import the machines necessary for converting raw cartonboard into cartonboard packaging.
"The ACCC noted that each cartonboard packaging manufacturer focuses on different segments within the market, but considered that other manufacturers will be able to compete effectively in a similar way to Wadepack".