AMWU: Amcor’s acquisition of Aperio will cost hundreds of jobs

Tuesday, 06 March, 2012

The Australian Manufacturing Workers’ Union (AMWU) has warned the ACCC that Amcor’s proposed takeover of its rival, Australian packaging company Aperio, could cost hundreds of jobs.

Amcor made a submission to the ACCC seeking clearance for the proposed acquisition on 14 November 2011. The ACCC called for comments on the acquisition on 23 February, with submissions closing on 8 March 2012. It is expected to announce its final view by 29 March.

AMWU National Print Division Secretary Lorraine Cassin made a submission to the ACCC’s review of the merger between Amcor, the world’s largest packaging company, and Aperio.

“We see the move by Amcor as one of eliminating a competitor rather than the acquisition of an asset to benefit the market,” Cassin said in a statement on the union’s website.

“Amcor has ample capacity in the flexible packaging market, having increased capacity in Asia. We do not see that the acquisition of Aperio would lead to increased or more effective competition resulting in lower prices for consumers or business, or better or more timely delivery of services.”

If Amcor were to acquire Aperio, its market share would grow to between 38 and 43%, said the AMWU - more than double the other two companies in the packaging market. The AMWU told the ACCC that holding such a large share of the market potentially gives Amcor the ability to exert upward pressure on prices.

The ACCC’s Statement of Issues said that the Competition and Consumer Act 2010 “prohibits mergers or acquisitions that would have the effect or be likely to have the effect of substantially lessening competition in a market”. The ACCC will consider whether Amcor’s acquisition of Aperio will lessen competition in the packaging market.

The AMWU believes this will be the case. “This level of market concentration is likely to limit competitive pressure in the market. We believe diversity needs to be retained in the packaging sector,” said Cassin.

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