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Corporate cop probes envelope deal

Tuesday, 09 August 2011
By Print21

Australian Papers completed purchase of Envotec assets will be investigated by the ACCC to gauge its impact on the envelope printing industry.

The fair-trade regulator is investigating where the deal falls within section 50 of the Competition and Consumer Act. The completed purchase has the potential to make Australian Office the largest envelope manufacturer and supplier in the country.

According to the ACCC, if the asset acquisition is found to substantially affect competition it may apply to the Federal Court for relief. Following the investigation it may choose not to contest the deal, declare the acquisition void, impose financial penalties, or order the assets to be split. Time will tell.

Section 50 of the Act prohibits mergers and acquisitions that can substantially lessen competition in a market, or are likely to do so.

Following the asset acquisition, Australian Office will split machinery and presses from the Mulgrave facility between the former Envotec sites in Notting Hill, Vic and Wangara, WA.

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