News

Amcor has revealed that it will sell two Spanish plants after it cleared the final hurdle in Europe in its $2bn deal to buy a majority of Alcan's packaging business.

The Australian group announced this morning that it had received European Commission approval to proceed with the acquisition of the European businesses of Alcan Packaging that it is purchasing from Rio Tinto.

A condition of the approval is that Amcor sells its Tobepal flexibles operation in Spain. The business has two plants with combined sales of around EUR110m that produce pharmaceutical, personal care and food packaging

Amcor said at the end of November that it could sell one flexibles plant to clear the EU competition laws.

According to the company, the Commission demanded the sale because of concerns over competition in the pharmaceutical sachet and aluminium cold-form foil product markets.

Amcor's managing director and chief executive, Ken MacKenzie, said: "Receiving approval from the European Commission is an important step toward closing the Alcan Packaging acquisition.  The two plants to be divested represent less than 5% of the combined sales in Europe and will not have a material affect on the synergies or operational improvements anticipated."

Although today's announcement means a major hurdle has been overcome, the deal, which was first announced in August, remains subject to regulatory approval in the United States and consultation with the European Works Council. 

The combined Amcor and Alcan Packaging businesses in Europe currently have sales of approximately US%4.8 billion in 75 plants.

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