Converting

Mondi, the packaging and paper group, has had a subdued debut on the London and Johannesburg Stock Exchanges following this week's demerger from its parent company, mining giant Anglo American.

Mondi's shares had a poor start in both bourses when trading started on Tuesday (3 July). The group's share price fell on its first day of trading, closing at 490p from its opening price of 500p. The volatility continued through Wednesday, and Thursday's price opened at 478p.

Meanwhile, Mondi Packaging has been given the go-ahead to proceed with its purchase of South African plastics packager Lenco. The Competition Tribunal in South Africa gave the group the green light on Wednesday (4 July).

The £55m (SAR780m) deal enables Mondi to pursue its strategy of growth and diversification into the plastic packaging sector.

Lenco is jointly owned by private equity firm Actis, which holds a 56.6% stake, empowerment group Brimstone (25%), and management (18.4%).

The company manufactures and sells a wide range of rigid plastics, including plastic containers, injection-moulded closures, foamed styrene trays, tubs and stretch film.