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Amcor gets green light for Aperio purchase

Wednesday, 28 March 2012
By Print21

Amcor has received unconditional approval from Australian competition watchdog to go ahead with its acquisition of the Aperio Group in a move that will see the packaging company substantially increase its market share of the packaging business in the region.

The ACCC has announced it would not intervene in Amcor’s proposed acquisition of Aperio, both of which are among the largest providers of flexible packaging to fast moving consumer goods manufacturers in the Asia Pacific region.

In statement released on 28 March, the ACCC said that the “proposed acquisition would not result in a substantial lessening of competition in any market.”

The decision comes after months of investigation, in which the competition watchdog consulted local and international flexible packaging manufacturers, customers and other interested industry players.

According to the ACCC’s chairman Rod Sims, Amcor’s acquisition of Aperio does not pose the threat of leading to a monopoly in the Asia Pacific market. With import volumes from packaging players further afield are on the rise, the ACCC believes competitive pricing within the local market will be kept in check.

“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 transport and import levels are increasing,” said Sims.

“Some overseas suppliers offer Australian warehouse and distribution services to better compete with domestic suppliers. There are also Australian suppliers looking to expand,” he said.

Amcor’s managing director and CEO, Ken MacKenzie (pictured), said, “this is a pleasing outcome as the acquisition represents an important strategic opportunity for our Asia Pacific flexible packaging business.

“We look forward to integrating these assents into the Amcor Group and working with our customers to deliver an improved product and service offering, particularly through innovation.”

Amcor and Aperio reached a $238 million acquisition agreement in early March, following shareholder approval of the deal. The transaction is expected to close in the June 2012 quarter.

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