The European Commission has approved Constantia Flexibles GmbH’s acquisition of Aluflexpack AG, subject to conditions to preserve competition in the flexible aluminium packaging market.
Competition Concerns & Remedies
The Commission found that the merger would reduce competition in the supply of sterilisable aluminium containers and lids for wet pet food and human food across the EEA, potentially leading to higher prices and fewer choices for food producers.
To address these concerns, Constantia will divest Aluflexpack’s sterilisable packaging business, including its Omial Novi plant in Croatia, to MTX Group, a Czech packaging company. An independent trustee will oversee the divestment process.
Regulatory Process
The approval follows a Phase I investigation, with 35 working days to assess potential competition issues. The Commission collaborated with Swiss regulators on the case.
Quote
“The parties’ commitment to sell one of their packaging plants ensures that food manufacturers will continue to have access to sufficient suppliers, and that European consumers benefit from competitively priced packaged food,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
The buyer approval process for MTX Group will be finalized separately.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_334
