News

Amcor has offered to sell a flexible packaging plant to help clear its $2.2bn deal for parts of Alcan Packaging with the European Commission.

The Australian firm said the combined business would have sales of around $4.8bn from 75 plants. In order to clear European competition authorities, the firm suggested selling a single plant with sales of less than $100m.

In a statement, Amcor said: "Although Amcor believes that no part of the transaction will have an adverse impact on competition, we anticipate a remedy, if any, would involve divestment of an Amcor flexible packaging plant.

"This possible sale would not have a material impact on synergies," the firm said.

The news comes a day after the European Commission extended the deadline for reviewing the deal by two weeks to 14 December. The original deadline was Monday ( 30 November).

The deal was first announced in August, subject to regulatory approval. At the time, Amcor chief executive Ken MacKenzie said it would bring customers of both companies "even greater value through broader offerings and enhanced customer service".

He added: "Critically, beyond the hard assets, the combined company will draw on the best people from both organisations to drive these improvements."

Amcor said competition approval has already been granted in Australia, Canada, Russia, Turkey and Ukraine and feedback from the US Department of Justice is expected in the coming weeks.

Alcan-owner Rio Tinto is still looking for a buyer of the remaining Beauty business after securing deals with Amcor and Bemis in the summer.

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