The Australian Competition and Consumer Commission today announced that it does not propose to intervene in Amcor Limited’s proposed acquisition of Aperio Group Pty Limited.
Amcor and Aperio currently both supply flexible packaging, primarily to fast moving consumer goods manufacturers.
After an extensive investigation, including the publication of a Statement of Issues on 23 February 2012, the ACCC formed the view that the proposed acquisition would not result in a substantial lessening of competition in any market.
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 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.
"In making its decision, the ACCC considered that there will be a number of competitors to Amcor Limited, particularly overseas manufacturers of value-added flexible packaging, as this type of packaging is generally easy to transport and import levels are increasing," ACCC chairman Rod Sims said.
"Some overseas suppliers offer Australian warehouse and distribution services to better compete with domestic suppliers. There are also Australian suppliers looking to expand," Mr Sims said.
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.