Smurfit Kappa-Mondi deal attracts OFT attention

The Office of Fair Trading said in a short statement this morning that it was considering whether the deal would create what it terms a “relevant merger situation” that would require a full enquiry.

It has invited comments on the possible effects on the corrugated market following the deal, under which Smurfit Kappa would acquire Mondi’s three UK corrugated plants at Bux, March and Mold.

The two packaging manufacturers revealed on 27 January that they were in talks over the acquisition. A second element of the negotiations would see Mondi acquire Smurfit Kappa’s European sack converting operations.

Rules on mergers that could affect competition were laid down by the Enterprise Act 2002.

The statement said that if the deal was deemed to create a “relevant merger situation”, the OFT would then investigate whether the deal should be referred to the Competition Commission for full investigation.

Comments on the deal should be submitted, before 3 March, to:

Michael Tilley
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

Email: michael.tilley@oft.gsi.gov.uk
Fax: 020 7211 8916

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