Business

Greif is to contest the Competition Commission's initial findings that the manufacturer's acquisition of Blagden Packaging Group's large steel drum business reduces competition in the UK market.

The firm, the UK's number one steel drum manufacturer, bought the Blagden operation, then the second largest producer, in a £142m deal last November.

However, in February this year, the Office of Fair Trading referred the merger to the Competition Commission.

In its provisional findings earlier in June, the commission said it believed the merger would result in higher prices.

But in a statement today, Greif chief executive Michael Gasser said the combined business would benefit both current and potential customers.

"While we are disappointed with the commission's provisional findings, we will continue to work with it to address our concerns based on the facts in this matter," he added.

Greif will also respond to the commission's findings in a written submission that will be considered at a hearing at the beginning of July.

The commission will issue its final report by 6 August.