Pact Group Pty Ltd - completed acquisition of Sunrise Plastics Pty Ltd

Summary

Pact Group Pty Ltd acquired Sunrise Plastics Pty Ltd on 30 November 2012.

Market definition

The ACCC primarily considered the effect of the acquisition on the national market for the supply of thin-walled plastic food containers up to approximately 5L capacity manufactured using injection moulding (IM food containers).

Competition analysis

The ACCC considered that the acquisition was unlikely to substantially lessen competition in the national market for the supply of IM food containers for the following reasons:

- a number of competitors remained post acquisition;
- Sunrise was not a particularly vigorous or effective competitor;
- the threat of entry and/or expansion would act as a constraint on Pact; and
- imports of IM food containers may be a likely alternative for at least some customers.

The ACCC considered the acquisition would not have any material effect on the acquisition of in-mould labels.

The ACCC investigated whether the acquisition gave rise to concerns that Pact could anti-competitively bundle or tie products across its various packaging businesses. The ACCC considered that Pact's ability and incentive to engage in such behaviour was not significantly changed by the acquisition.