- Detmold Flexibles Pty Ltd and Detmark Pty Ltd
SummaryAmcor Ltd proposes to acquire Detmold Flexibles Pty Ltd and Detmark Pty Ltd.
Market definitionThe ACCC assessed the competition effects of the proposed acquisition on the national market for the supply of value-added flexible packaging, which includes printed, laminated and converted flexible packaging. The ACCC's assessment focused on the merger parties' principal areas of overlap, being the supply of value-added flexible packaging to manufacturers of fast moving consumer goods (FMCG).
Competition analysisThe ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the supply of value-added flexible packaging.
The ACCC considered that post acquisition Amcor would continue to be constrained by actual and potential import competition. Market inquiries confirmed that FMCG manufacturers in a range of sectors are able to successfully manage their supply chain through importing value-added flexible packaging. Market feedback also showed that FMCG manufacturers are able to credibly threaten to switch some or all of their value-added flexible packaging requirements to imports - enabling them to achieve cost savings from domestic suppliers. Importers have a growing presence in Australia and are able to offer warehousing, technical and sales staff to assist customers manage an import supply chain.
The ACCC also considered the competitive constraint provided by Detmold in the supply of value-added flexible packaging. While market inquiries indicated that Detmold had a number of significant FMCG manufacturers as customers and was valued by other market participants as a potential source of supply, market inquiries indicated that Detmold was not a particularly vigorous and effective competitor and had not provided a strong constraint on Amcor.
The ACCC therefore concluded that the proposed acquisition would be unlikely to enable the merged firm to increase prices and/or reduce service levels in relation to the supply of value-added flexible packaging.
|21/11/2013||ACCC commenced review under the Merger Process Guidelines.|
|13/12/2013||Closing date for submissions from interested parties. ACCC assessing information provided during market inquiries and consulting with merger parties on any relevant issues or concerns arising.|
|21/01/2014||ACCC requested further information from the merger parties.|
|07/02/2014||ACCC received further information from the merger parties. ACCC amended former provisional date for announcement of findings (30 January 2014).|
|20/02/2014||ACCC announced it would not oppose the proposed acquisition.|