Packaging company Amcor (ASX:AMC) has received European Commission approval to purchase the European assets of Alcan Packaging for $2.44 billion – on the condition that it divest two plants.
The EC has ruled that Amcor must sell its two production plants in Tobepal if it wishes to proceed with the acquisition.
The plants have combined sales of around 110 million euros ($160.6 million) producing pharmaceutical, personal care and food packaging products.
By comparison, the combined Amcor and Alcan Packaging businesses in Europe currently have sales of US$4.8 billion ($5.28 billion), Amcor said.
“The two plants to be divested represent less than 5% of the combined sales in Europe and will not have a material effet on the synergies anticipated,” Amcor CEO Ken MacKenzie said.