ACCC will not oppose Aperio takeover

The Australian Competition and Consumer Commission (ACCC) has said it will not intervene in Amcor’s proposed acquisition of flexible packaging company Aperio.

Having investigated the acquisition, the ACCC concluded that it “would not result in a substantial lessening of competition in any market.” The ACCC said it consulted domestic and international flexible packaging manufacturers, customers and other industry participants and considered the competition effects of the acquisition before arriving at its decision.

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

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

The ACCC said that competitors, both domestic and international, would be able to attract business if Amcor attempted to increase its prices or decrease its service levels.

Prior to the ACCC's decision, the Australian Manufacturing Workers' Union (AMWU) made a submission to the ACCC arguing that hundreds of jobs would be lost as a result of the merger. The AMWU's Lorraine Cassin claimed that Amcor was eliminating a competitor rather than acquiring an asset and Amcor's large market share would enable it to exert upward pressure on prices.

Read our related news items on the Amcor-Aperio merger: Amcor to acquire Aperio for $238 million and AMWU: Amcor’s acquisition of Aperio will cost hundreds of jobs.