EC delays approval of Amcor's Alcan buy

EC delays approval of Amcor's Alcan buy

Packaging company Amcor (ASX:AMC) today announced it would take at least two weeks longer than expected to clear the regulatory hurdles required to acquire parts of Alcan.

The European Commission has delayed a decision on whether to allow Amcor to acquire the assets until December 14, and warned that part of the acquisition may have an unacceptable impact on competition.

Amcor requires the approval of EC and US regulators in order to proceed with the acquisition of the units, which had combined sales of US$4.06 billion ($4.35 billion) last calendar year.

But Amcor said that even if a remedy is requested, it expects that all that would stand in the way of the acquisition would be the divestment of an Amcor flexible packaging plant with sales of less than US$100 million ($107.3 million).

The divestment would have little effect on synergies, Amcor told investors. If the acquisition is approved, it will lead to a company with total revenue of US$13 billion.

Amcor has already received approval from regulators in Australia, Canada, Russia, Turkey and Ukraine to proceed with the sale.

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Tags Amcor Competition Regulation

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