ACCC green lights Amcor’s Aperio acquisition

The Australian Competition and Consumer Commission (ACCC) will not intervene in Amcor’s proposed acquisition of Aperio after concluding the deal will not lessen competition.

Amcor and Aperio both supply flexible packaging, primarily to fast-moving consumer goods manufacturers. Amcor recently announced it had reached an agreement to acquire Aperio Group for AUS$238 million (US$253 million), although the deal was subject to regulatory conditions, including approval from ACCC, after initially proposing the purchase towards the end of 2011.

Concerns had been raised that a takeover would decrease competition and cost jobs. However, ACCC said an extensive investigation led it to conclude that the proposed acquisition would not result in a substantial lessening of competition in any market.

'There will be a number of competitors to Amcor, particularly overseas manufacturers of value-added flexible packaging, as this type of packaging is generally easy to transport and import levels are increasing'

A large number of interested parties were consulted in the ACCC review, including: domestic and overseas flexible packaging manufacturers; small, medium and large customers; and other industry participants. ACCC 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.

ACCC added that if the merged Amcor/Aperio business 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.

ACCC chairman Ron Sims said: ‘In making its decision, ACCC considered that there will be a number of competitors to Amcor, particularly overseas manufacturers of value-added flexible packaging, as this type of packaging is generally easy to transport and import levels are increasing.

‘Some overseas suppliers offer Australian warehouse and distribution services to better compete with domestic suppliers. There are also Australian suppliers looking to expand.’